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Understanding Cost-of-Living Allowances (COLA): A Key to Global Mobility Success

Written by Weston Hicks | Apr 04, 2025 @ 12:21 PM

When managing international assignments, getting compensation right is critical—not just for fairness, but for assignment success. One of the most important tools in your compensation toolkit is the Cost-of-Living Allowance (COLA). Done well, it ensures employees maintain their standard of living while abroad, helping them stay focused, productive, and financially secure.

 

Why COLA Matters

Moving across borders often means facing very different costs for everyday goods and services. That’s where COLA comes in: it helps close the gap so employees aren’t left covering the difference out of pocket.

COLA helps organizations:

  • Offer fair and equitable compensation
  • Boost assignee satisfaction
  • Minimize compensation-related issues

COLA isn't just a policy lever—it's a trust builder between you and your global employees.

Best Practices for Managing COLA

To run a strong COLA program, keep these principles in mind:

  • Align with your policy strategy
  • Use accurate, up-to-date data
  • Match delivery method to your systems
  • Communicate clearly and often

Want to keep mobile employees informed? Use pre-built reports that break down COLA logic and show recent changes.

How AIRINC Supports COLA Strategy

For organizations looking to simplify COLA, AIRINC makes it easy:

  • Standardized upload-ready data formats
  • API integrations for seamless tech syncing
  • Personalized employee reports for clarity
  • A responsive expert team for guidance

Need to explain a COLA drop to an assignee? AIRINC’s employee-facing reports make it simple.

Final Thoughts

COLA is more than a number—it’s a strategic tool that impacts employee experience and program success. With the right data, delivery tools, and support, managing COLA can be easier and more effective.