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Expatriate Compensation Strategies: Applying Alternative Approaches

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Expatriate Compensation Strategies: Applying Alternative Approaches
By Roger Herod

2009, 38 pages, Paperback
ISBN: 978-1-586-44124-1
SHRMStore Item #: 61.15503

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A PDF version e-book is also available through Independent Publishers Group.

Today's multinational companies face far more complex mobility issues than compared with the past. Some are even trying to develop policies to accommodate more than 100 nationalities being relocated on a wide variety of assignment types -- global, regional, short-term, developmental, and permanent. Deciding on the types of compensation policies to implement, as well as how to communicate and administer them, has become a major strategic and logistical challenge for many companies. What may work for the assignment of a few expatriates who originate from one home country may not be appropriate for the organization that begins to assign individuals -- in various assignment categories -- from several home countries. Expatriate Compensation Strategies explains and distinguishes the main alternative approaches to pay packages.

The other titles in SHRM's Global HR Management Series are

  • Benchmarking International Assignment Programs: Assessing Overall Effectiveness
  • Expatriate Compensation: The Balance Sheet Approach
  • Global Compensation and Benefits: Developing Policies for Local Nationals
  • International Assignment Programs: Tackling the Critical Issues
  • Managing the International Assignment Process: From Selection Through Repatriation
  • Short-Term International Assignments: Implementing Effective Policies

 Praise for the Book

"Expatriate Compensation Strategies provides an excellent overview of the various alternatives to address compensation issues related to international assignments. It succinctly summarizes a wide array of approaches, and includes practical guidance about the advantages and disadvantages of each. This is a helpful tool for anyone new to the area, as well as experienced managers considering different ways to meet their mobility needs." -- John Lucia, Senior Manager, Global Expatriate Programs, Procter & Gamble Company
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 About the Author


Roger Herod, SPHR, is a Principal with Mercer, based in Chicago. He carries out a wide range of global projects for major multinational clients in the United States and Europe, particularly focused on global compensation, benefits, and mobility issues.

Herod has held senior-level international human resources positions since 1974, working extensively in the United States, Europe, Latin America, and Asia, as well as having lived in the U.K., Belgium, Switzerland, and, at present, the United States. He has worked for such leading companies as Procter & Gamble, General Foods, R.J. Reynolds, and Campbell Soup, where he was Vice President, HR for Campbell Soup's International Division. A graduate of Manchester University in the U.K., he is a Chartered Fellow of the U.K. Institute of Personnel Management and Development.

Herod, who has served on the Board of Directors of SHRM's HR Certification Institute, has been extensively involved in the development of the GPHR certification program and has spoken at a wide range of seminars and conferences. He is also the editor of the International Human Resources Guide, and has had articles published in various journals, including Benefits and Compensation International and Mobility.


 Table of Contents



The Home-Country Balance Sheet System

Modified Home-Country Approaches

Short-Term International Assignments

Rotator Assignments

Regional Compensation Approaches

Expatriates from Lesser-Developed Countries

Headquarters-Based Compensation Systems

Higher of Home or Host Approach

Host-Country-Based Compensation

Developmental and Training Assignments

Permanent Transfers



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