WHAT MATTERS?
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.