What is “local-plus” — and why should your company know the term?
Local-plus packages are often used in international assignments as an alternative way to pay relocating employees. Business Development Manager Jarrin Cotten has more in this Relo Tip Tuesday.
Complete transcript: “Hi, my name is Jarrin Cotten, business development manager here at Plus. Today, I’m going to take a look at what is meant by ‘local-plus.’
So what is local-plus? Local-plus is a type of international assignment package where the employee is placed on the local, or host, country salary structure and then given a few additional benefits, such as transportation or housing.
According to a 2015 Mercer survey, almost 52 percent of companies already utilize a local or local-plus approach to their assignments. Another 15 percent are considering implementing this in the near future.
So why do companies like local-plus? Many companies find they are more cost effective than traditional, home-based assignments. It also helps ensure that the employee is paid in the same manner as the local workforce, reducing inequalities.
We’ve seen a growing number of clients use a localized approach in recent years, and we only expect that trend to continue. With more young professionals looking to gain global experience and companies looking to reduce program costs, the local-plus package is here to stay. Thanks for watching!”