Global Compensation Accumulation- What is it, what makes it difficult and why is it important?
Plus’s Vice President of Global Services Chris Pardo tells mobility teams everything they need to know to run an awesome global comp program.
Complete transcript: “Hi my name is Chris Pardo. I’m the vice president of global services here at Plus Relocation Services. I’m here to talk a little bit about global compensation accumulation. That’s a mouthful. That is the collection of all your assignment related expenses around the world. Things like host country rent, dependent school payments, utility payments, transportation payments.
So what makes global compensation accumulation so challenging? Well, many programs have expatriates all over the world and have payments being made by home and host entities or relocation companies or even often expatriates submitting them through normal business practices.
So why is it so important? Easy answer: compliancy. For any mobility program to consider itself healthy, it has to be compliant. It has to be capturing all these assignment related expenses, coding them and reporting them properly to the tax provider so that they can do proper tax filings in each location. It protects the company and it protects all of your employees. It’s like an immunization for the program. It’s going to keep it healthy, and safe, and risk free.
So let’s talk about three key best practices for your mobility program. First, identify all your key stakeholders that are involved in the program. Make sure you understand who’s making those payments in each location around the world. Two, centralize your program. Your mobility program might not be centralized but this part of the program should be centralized so you can keep it on track and well coordinated. Lastly, organize. Great organization will minimize the amount of stress in your program, especially at year end.
So clear communications, processes, timelines, all those thing help keep your program organized and on track. If you do those three things, you should be well on your way to a healthy mobility program.”