Employee Localization: Alternative to Expatriate Assignments?

November 7, 2016:

In the October edition of the International HR Advisor newsletter, Andrew Bailey has published an article discussing the potential considerations for employers considering localizing their expatriate employees.

“Localization” occurs when an expatriate employee is placed into the host country on their terms and conditions of employment and is provided with local pay elements. This usually refers to transferring the employee so that they are no longer an employee of the foreign (home) entity and thus become an employee of the local entity in the host country. Localization has become a major trend for international companies looking to save money on international assignments.

While localization may help the company save money, it may not always be a lot of incentive for the employee to accept such an assignment. Differences in cost of living, salary levels, benefits, and taxes, among others, all need to be considered by both the company and the employee.

Andrew Bailey outlines these and other factors for employers to take into account in his article when considering localizing an employee. You can download the full text of the article here.

Do you currently do business in multiple countries or are you considering opening an office in an international location? You can check out Asinta’s list of Partners by country here. With Partners in 56 countries around the world, there’s a good chance that we have just the local expert you need to get all of your questions answered.