Indian-origin multinationals are facing various challenges while posting an employee abroad including competitive salary packages, taxation and even spouse dissatisfaction, says a survey.
In one of the first surveys of homegrown companies that are expanding globally, human resource consultancy firm Mercer has identified the latest international assignment policies for managing a globally mobile group of employees and the challenges faced by employers.
"Some of the most common challenges faced by employers of international assignees are those regarding competitiveness of expatriate packages, issues with different tax structures and of overall cost containment.
"Companies of Indian origin find themselves challenged by significant costs borne to offset international compensation inequity," said Rupam Mishra, Mercer India's global mobility practice leader.
The 'Expatriate Management Survey-India' report found that less than half (44 per cent) of companies compensate their international assignees for tax differentials. The survey also found that 44 per cent of companies use the home country balance sheet approach to determine expatriate pay.
The approach is based on maintaining parity in the standard of living across the international assignee's 'home' and 'host' country.
"Organisations are cognisant that international assignments... which include family relocation call for significant investments... (and) would like to ensure that their investments deliver an acceptable return by carefully choosing only the best people...," said Gangapriya Chakraverti, Mercer India's business leader for information product solutions division.
