Local Plus

File:CornwallLocalPlus.jpg

CornwallLocalPlus

Local Plus is a type of expatriate compensation package that has gained popularity among multinational companies. The Local Plus package is designed to offer a middle ground between the traditional expatriate package, which includes a wide range of benefits and allowances, and a local package, which typically includes salary and benefits aligned with the host country's standards. This compensation model aims to attract and retain international talent by offering a competitive package that includes some expatriate benefits while encouraging integration into the local environment.

Overview

Local Plus packages vary by company and location but generally include a base salary, a housing allowance, and possibly an education allowance for children. These packages may also include health insurance, relocation expenses, and a transportation allowance. Unlike traditional expatriate packages, Local Plus packages do not usually cover home leave trips, club memberships, or tax equalization. The goal is to provide enough benefits to make the relocation attractive and competitive without the full cost to the company of a traditional expatriate package.

Advantages

The Local Plus package offers several advantages for both the employer and the employee. For employers, it is a cost-effective way to manage international assignments, as it is less expensive than traditional expatriate packages. It also helps in attracting local talent with international experience or expatriates who prefer to integrate more fully into the host country. For employees, it provides an opportunity to live and work in another country with financial and logistical support that eases the transition, while also offering a level of compensation that acknowledges their expatriate status.

Challenges

One of the main challenges of the Local Plus package is finding the right balance between local and expatriate benefits to satisfy both the employee and the employer. There is also the risk of creating disparities among employees, leading to dissatisfaction and a feeling of inequity. Additionally, employees on Local Plus packages may face challenges in understanding and managing their taxes, as they may not receive tax equalization benefits.

Considerations

When designing a Local Plus package, companies must consider the cost of living in the host country, the local market rates for similar positions, and the specific needs of the employee or their family. It is also important to clearly communicate the details of the package to potential candidates to set the right expectations.

Conclusion

Local Plus packages represent a strategic approach to international assignments, offering a balance between cost-effectiveness for the company and attractiveness for the employee. As global mobility continues to evolve, these packages will likely become more refined and tailored to meet the changing needs of both multinational companies and their globally mobile workforce.