Localisation of expatriates is problematic for employers, says ORC Worldwide's 2007 Survey on International Localisation Policies and Practices for Expatriates.

6 August 2007

AMSTERDAM - Localisation of expatriates is problematic for employers, says ORC Worldwide's 2007 Survey on International Localisation Policies and Practices for Expatriates.

According to the report, 48 percent of the participants have seen an increase in the use of localisation over the past two years, yet the practice remains tricky.

Obstacles faced by employers when localising – that is, phasing out or removing expatriate assignment terms and conditions – include retirement plans, consistency in developing local pay packages, management preference for individual negotiations, establishing an acceptable local salary in low-salary countries, and employee requests for continuance of coverage for international schools and health care.

"Although cost has traditionally been a driving factor in localisation," Geoffrey W. Latta, ORC executive vice president, reports, "two other reasons now lead the way – the expatriate's own desire to remain abroad and the company's need for the employee's specific skills on a long-term basis."

Many companies are yet to adopt any formal policy on localisation. Of the 44 percent of participants who have implemented the policy, only 19.4 percent actually follow it.

"This finding reflects the wide variety of conditions under which localisation occurs," says Latta. "What works in one country won't work in another. One size doesn't fit all, but that makes the challenge of avoiding different deals that can't be defended all the more difficult."

For more information, please visit www.orcworldwide.com.

[Copyright Expatica 2007]