What is a Personal Salary Impact Statement and how is it used in Global Mobility?

    Apr 08, 2019 @ 01:02 AM / by Gerald Abbey

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    What is a Personal Salary Impact Statement?

    This is information that an employer can offer an employee when relocating them from one location to another. This statement provides a sense of how the employee’s purchase power will be affected by the move.


    Why is a Personal Salary Impact Statement important when relocating?

    Personal Salary Impact Statements provide a transferee – international or domestic – with a clear explanation of how differences in income taxes and costs will financially affect the employee at his or her income and family size. By reviewing such a statement before initiating a move, both the employer and the employee will benefit from a better understanding of the true value of their new location’s compensation. With expectations aligned, the business can plan for higher success rates with international or domestic moves.


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    What types of issues can a Personal Salary Impact Statement help avoid?

    An employee might gross more if moved from a low to a high wage location. In some cases, this can boost the employee’s standard of living, but if the destination location is high-cost and has high income taxes, the employee may be worse off financially. Conversely, an employee might move from a high-wage to low-wage country and experience an increased standard of living if the destination is low cost. If an employee understands the financial impact of a transfer before they accept the offer, it may help alleviate problems later.

    You can review a sample impact statement below:


    AIRINC sample Personal Salary Impact Statement

    2019 Mobility Outlook Survey from AIRINC: Download now to gain insights into the future of Global Mobility!Our 2019 Mobility Outlook Survey confirms that 58% of firms are seeking ways to improve employee communications regarding the potential financial impacts of assignments/transfers

    Download the 2019 AIRINC Mobility Outlook Survey!


    How do you create a Personal Salary Impact Statement?

    Increasingly, employees expect to be able to access the information they need quickly and easily. AIRINC offers on-line tools that allow users to analyze the financial impact of a particular move with a few clicks. AIRINC can help configure the standard report into a Personal Impact Statement which “speaks” directly to the employee with personalized information on the potential impact of a transfer.

    If you are interested in enhancing the transfer process for your employees via Personal Salary Impact Statements, please contact us today. If you'd like to read more about how one of our most popular products - the Salary Evaluation Tool - can provide clarity with the economic impact of a permanent relocation on an employee, click below: 

    Read now!  

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    About AIRINC

    We help our clients address expatriate compensation and mobility issues in a complex global environment through advisory services, data services, and technology solutions, while providing our employees with a culture of teamwork, global knowledge, career growth, and interesting solutions to challenging problems.

    We understand that people make an organization successful. We empower companies to deploy global talent by leveraging high quality-data, decision-making tools, and thought-leading advice. Our industry expertise, solutions, and consultative approach enable us to partner with clients to deliver value. Learn more by clicking here.


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    Topics: Mobility Policy, Cost of living data, COLA, Cost of living allowances, Educational, Personal Salary Impact Statement

    Gerald Abbey

    Written by Gerald Abbey