Many companies have embraced localized, or host-based, pay in order to meet their global staffing needs. These types of compensation packages can be significantly less expensive than traditional expatriate pay packages, but they must be applied with care and in appropriate circumstances.
The Mercer Advantage
As a global leader in talent management, Mercer’s expertise and extensive compensation data on international assignments and local salaries lets us help you build effective policies and provide equitable host-based compensation packages.
Set Your Policy
More than 60% of multinationals use Local Plus, yet only about 40% have a Local Plus policy. Local Plus is a cost-effective but complex method that requires the balance of a systematic approach and flexibility. Mercer works with our clients to develop policies that find this balance, informed by our experience working with the largest multinationals on their programs and by decades of research into assignment policies and the latest trends in alternative assignment practices. Talk to us about your policy development and benchmarking needs.
2016 Local Plus and Location-specific Survey
An in-depth look at policies and practices in several locations where Local Plus packages are prevalent, the Local Plus and Location-specific Survey expands on our recent research into alternative assignment types. Receive a free summary and discounted report pricing for each location you complete our questionnaire.
Alternative International Assignments Survey
The Alternative International Assignments Policies and Practices Survey is a deep-dive into Local Plus and five other alternative types of assignments, examining recent trends and prevalent policies and practices. Participants receive a free Regional Report and are eligible to purchase the comprehensive Global Report.
To send an employee on a Local Plus assignment or transition an expatriate to a localized package, you need accurate, competitive salary data for the market and job level, and to understand and explain each part of the package. With Mercer’s guidance, policy benchmarking database, and peerless compensation data for international assignments and local salaries, you can be sure your package offer is equitable, competitive, and in keeping with your long-term strategic objectives.
Compensation Localizer lets your streamline how you calculate Local Plus packages.
Our easy-to-use Local Plus calculator includes local salary data from our International Position Evaluation (IPE) database, and allows you to easily calculate a new offer or compare your proposed package to an employee’s current compensation, even suggesting what “plusses” might be necessary for Local Plus, and for how long.
With Compensation Localizer, you can do all this in as little as ten minutes. So you can let go of any complicated spreadsheets you might be using and stick to our transparent, easy-to-read report.
Become a Local Plus Expert
Local Plus Resources
When Is Localization Right?
- Transitioning from traditional expatriate to host-based pay
- Local Plus developmental assignments
- Indefinite transfers
- Intra-regional transfers
- Hiring foreigners directly in the host location
- Applying a consistent policy to assignees already on a Local Plus or local package
- Experienced professionals with critically needed skills (may require extra incentives)
- Early-career employees seeking international experience
- Candidates from emerging markets may need no incentive at all
Examples of Plusses in Local Plus
- Tax assistance
- Relocation allowance
- Host-location housing
- Dependent education
Did You Know?
- 75% of multinationals have international employees on Local Plus or local packages. — Alternative International Assignments Policies and Practices Survey (AIA)
- The number of assignees on Local Plus packages varies from as little as 29% in the Americas to as high as 49% in Asia Pacific. — AIA
- Across the world, multinationals typically do not provide any Cost-of-Living allowance or adjustment to employees on Local Plus packages. — Local Plus Surveys
- Companies in all regions tend to offer tax and immigration assistance to international employees on host-based packages. — Local Plus Surveys