Cost of Living Comparisons and Adjustments
An employee who accepts a relocation package must be prepared for many changes, including fluctuations in living expenses if they are moving to a more expensive location. Sometimes, especially when moving abroad, the cost of living increase can be substantial enough to require additional support from the employer. Allowances, or cost of living adjustments, provided to transferees are most often used for temporary relocations, but permanent relocations may receive a base salary adjustment to offset market conditions. In either case, it’s critical that the employers compare cost of living expenses in the new location to determine an adjustment that is reasonable and cost effective.
XONEX Relocation conducts cost of living comparisons in markets around the world in order to provide our clients with the information they need to make informed decisions on adjustments for their relocating employees. Using up-to-date data on expenses, currencies, market fluctuations, tax regulations, housing data and more, we help our clients create customized policies that account for cost of living adjustments.
At XONEX Relocation, it’s always our goal help clients provide cost-effective and competitive relocation benefits. Proper cost-of-living comparisons and adjustments will help clients retain talent by encouraging employees to accept relocations, no matter the location.
Build the best relocation program for your business. Contact XONEX for more information about relocation services for your employees.