• Submitted By: DSirene
  • Date Submitted: 05/12/2016 7:46 PM
  • Category: Business
  • Words: 542
  • Page: 3

In this case, HR manager Puja mentioned that with the expansion of globalization, Policies Regarding Expatriate Assignments have been changed, new local international policy has been proposed, it is a more cost effective solution to international transfers of employees that do not meet stricter expatriate program requirements.

They know that as a pure local contract would not be able to attract these employees, they provide some extra benefits to these local international hires. The local international contract fits between an expatriate and a local package. Even though these transfers are partly employee initiated, they provide a slow landing into the new country. There are two criteria that justify local international policy contracts: internal employee who is relocated, and not a talent or top potential employee.

And how local international policy different to a local package?
First, host country provides some kind of support costs covered by the company. Including Settling-in allowance (to cover the incidental miscellaneous expenses of a move, e.g. temporary accommodation and meals on arrival, school uniforms and books for school-age children), medical check up, Visa and permits (based on country standards), travel costs (outward journey; one home trip during first year). And some optional cover: Allowance for housing and school (-50% after first year, 0% after year 2), retention bonus, and allowances according to local needs

The aim of using local international policy is to localize the employee; some support is provided for first 2 years and becomes a local contract afterward. But employee must still fund various aspects, and no pre-assignment visit cover, they have to self-arrangement of housing, negotiating school.
Comparing to the home-based contract and local international contract, we can find some common ground, they all settling in allowance and providing support, providing home trip, and providing house and education allowance.


Similar Essays