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Decisions - OEExpatriates - Englishmen abroad.

Europe Intelligence Wire

| March 01, 2005 | COPYRIGHT 2005 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Financial Director)

Byline: Anna Scott, editor of Pay Magazine.

There's a broad rule of thumb that it costs a company twice as much Sto send an employee abroad as it would to keep them in the UK. But this is Swhere any simple comparison ends because the cost of expatriate packages Svary greatly between country and company. In Japan or Hong Kong, for Sexample, it can actually cost three, four, even five times a UK Sremuneration package.

This should be argument enough to keep UK workers in the UK, employ a Slocal in the host country, or consider international commuters who travel Seach week between global branches.

But despite a surge in global tensions and natural disasters, companies Sare not shying away from sending their employees to work abroad. "More Speople are now forecasting an increase in expatriate workers," says Angela SHume, head of consulting at Employment Conditions Abroad SInternational.

Remuneration packages are the biggest cost for employers, and companies Sshould consider a company-wide policy. "Usually, the salary is increased Sbecause we are often talking about going abroad for a year at least," says SHume.

"Expatriate pay has seen some significant change over the past five years, Swith cost savings measures such as the use of Efficient Purchasers Indexes Sand the removal of certain assignment allowances," explains Nino Di Vito, Spartner in Ernst & Young's human capital group.

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