HRchitect Tech Vendor News: Mercer launches Compensation Localizer for streamlining pay for expatriates on local compensation programs

New York, July 15, 2014

Mercer introduced today Compensation Localizer, a new tool that enables organizations to streamline how pay is established for international employees on a localized compensation program. This technology quantifies the economic impact to expatriates placed on a host-based compensation package by calculating the difference between costs in the current and proposed locations, taking into account taxes, cost of goods and services, and housing expenses (see Figure 1).

With Compensation Localizer, organizations can establish financial packages to meet both the individual and company needs by applying standardized or customized data for employees on a host-based expatriate compensation package, including local plus packages (where it is a feasible alternative to a traditional expatriate package), localization (transitioning expatriates to host-based pay), one-way indefinite international transfers and locally or directly hired foreigners.

“We are excited to introduce a new international compensation online resource for the mobility marketplace,” said Ed Hannibal, Partner and Global Leader of Mercer’s Mobility practice. “While most organizations pay their expatriates on a home country salary basis, Compensation Localizer marries Mercer Mobility information with Mercer Local Remuneration data to assist companies and their leadership when their desire is to pay mobile employees on a local basis.”

Compensation Localizer simplifies the process for negotiating a pay package that meets both the need of the assignee and the organization. With this tool, organizations can calculate the precise economic gain or loss of transferees, compare pay packages to the local market using Mercer’s proprietary market remuneration data, and easily determine a compensation package that represents a gain or needs to be modified because of an economic loss.



To learn more about HRchitect and how we can help your organization, please visit HRchitect is the leader in HCM systems strategic consulting.  As the premier Human Capital Management (HCM) Systems consulting firm, we offer end-to-end HR technology consulting services focused around strategic planning, evaluation/selection, project management and implementation of HR systems, Talent Management Systems, Talent Acquisition Systems, and Workforce Management software. After more than 17 years in business working on over 2100 successful engagements for more than 900 clients across the globe, HRchitect is a name you can trust for all of your organization’s HCM technology-related consulting needs.

Matt Lafata, HRchitect


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