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Slide Notes

At AIRINC we help our clients, many of them are multinational leaders in their field, design and support a compensation methodology that makes sense to them. By understanding what other companies are doing, the unique context of their organisation, we can present redesign options to our clients, showing the pros and cons of each. In order to set up and manage a new program, it is essential to source robust and defensible data. This is AIRINC's sweet spot.
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The Power Of Data

Published on Jul 14, 2013

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PRESENTATION OUTLINE

THE POWER OF DATA

HOW TO REWARD YOUR ASSIGNEES CORRECTLY
At AIRINC we help our clients, many of them are multinational leaders in their field, design and support a compensation methodology that makes sense to them. By understanding what other companies are doing, the unique context of their organisation, we can present redesign options to our clients, showing the pros and cons of each. In order to set up and manage a new program, it is essential to source robust and defensible data. This is AIRINC's sweet spot.
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WHAT MATTERS?

QUALITY, MEANINGFUL AND DEFENSIBLE DATA
For 60 years AIRINC has performed on average 300 surveys per year. Our in-house surveyors help ensure accurate prices are collected, 1800 per location, providing a sound statistical basis to calculate cost of living differentials. After all, someone's pay will be determined by this number. We want to get it right.
There are many COL methodologies. For most programs we believe in a home-weighted basket works best, because nationalities consume very differently and it's only normal use our home as our reference. This is, after all the basic concept of the home balance sheet. The more diverse your population, the more this holds true. At AIRINC we also listen to our clients to understand what they are trying to achieve and ensure the allowances we provide ultimately reflect this. Our price index (PI) level simply looks at the price differences between 2 locations. Our expat modified index (EMI) also accounts for changes in living patterns caused by being on assignment. For example, we know that assignees from Europe on assignment in Africa, drink more bottled water, get more domestic help and spend more on communications than they would do at home.
In our EMI we capture these living pattern changes to reflect reality as closely as possible.
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WHAT IS CONTEXT?

A WORD HAS MANY MEANINGS...
Just like a word that is interpreted out of context, our approach is to look deeper to find the root of the cause. When providing data to support a Global Mobility program, this is equally important.
"Our expat allowances are too low compared to our competitors"
"our hardship premiums aren't right for Asian and African assignees"
"We need to move to a host- based pay to save costs"
These are typical comments we hear from clients. A knee-jerk response offers a quick fix, but often leads to complex problems in the future. Our instinct is to take a step back and look at the problem within the overall organisational context and strategy. This includes evaluating demographics, industry dynamics, corporate culture, talent strategy...in this way we find solutions that work in the longer term and wider context.
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THE SOLUTION?

THINK ABOUT WHAT YOU NEED AND TALK ABOUT IT
No two companies are the same. We are sure of this.
Doing a thorough strategic review is undoubtedly the way to tackle short and long term solutions. In general, the bigger your mobile population, the more time you will need. AIRINC can help with all or some of this exercise depending on your in-house resources.
Not all companies have the time to take on such a project. We can help you take the right steps to reach your goal over the longer term. Policy scorecards and impact analyses are efficient ways forward that help tackle immediate issues.
In all cases, we urge you to find a reputable partner to discuss your issues with.
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SIMPLY GET IT RIGHT

PREFER TO FOLLOW THE OTHERS OR.....
No need to be different for the sake of it, but make sure what you do is right for you. That ,earns not simply following average practice.
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AIRINC CAN HELP

GLOBAL MOBILITY DATA AND SOLUTIONS SUPPORTING 80,000 ASSIGNEES AROUND THE GLOBE
We are there to talk and to help. Please reach out.
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