Guide to Expatriate Benefits

Expatriate compensation for overseas employees is complex at best. There are companies who can handle both expat compensation and expat benefits professionally and efficiently, making it a great deal easier for the employee to get business done for you.

Not only do expatriates face the challenges of being away from family and friends for long stretches, when expats do get to talk to family members an friends, it is typically at odd hours or through static-filled phone calls. The cost of managing expatriate benefits should include compensation for both their work while on the job as well as the challenges they face outside of their work environment, including phone and video technology for communicating with family in the U.S.

The key to handling expatriate compensation is to recognize the challenges expatriates face, and compensate accordingly. Weigh the following when you put together expatriate compensation packages:

1. Internal versus external support for expat employee benefits;

2. Foreign laws and regulations for expat compensation; and

3. Salary hikes in place of complete expatriate compensation packages.

Action Steps
The best contacts and resources to help you get it done

Offer solid expatriate benefit management

Large and well-established expatriate job benefits specialists are more expensive, but well worth it. An in-house operation comes with the hassle of staying up-to-date on country-specific foreign policy surrounding everything from health care to local customs. Easily accessible corporate support should always be an expatriate benefit. So, even if you outsource expat benefits management, be sure your expatriate has a direct contact for any questions an in-house expatriates compensation specialist can't handle.

I recommend: Contact Global LT for an extensive list of expat benefits in Hong Kong, Germany and London. Estimate the cost of managing international expatriate benefits in-house with Equus Software. Fill out an online form for a free CD demo.

Provide help with foreign health care in expat compensation packages

In a survey of at least 700 expatriates, 55% felt a lack of health care support hindered their job performance and peace-of-mind. If an expat isn't feeling well or is battling ongoing health issues, chances are it will have a dire effect on work performance. Turn to well-established benefits specialists for medical care and compensation. Offer comprehensive packages and include coverage for office and emergency visits. For expats who spend more than 2 years at a time overseas, find a package covering intensive care and transplants.

I recommend: Get a quote from CIGNA, one of the biggest medical providers in many overseas locations. Another trusted company in international health care providers, Aetna, offers coverage through Goodhealth.

Find expatriate salary information online

Salary is the deciding factor when it comes to making the decision to work in another country. When employees leave home, they leave behind family and friends for foreign customs, and they are typically well compensated. If you decide not to offer a benefits package, you can handle expatriate compensation with salary as long as you offer some other kind of support system.

I recommend: Survey salaries by location with Executive Resources Limited. Go to SalaryExpert for a full line of worldwide salary and cost-of-living calculating products. Expatica.com and TripResource.com both offer free resources and links for a variety of expatriate needs.

Tips & Tactics
Helpful advice for making the most of this Guide

• Select an expatriate medical package that covers expenses in both the U.S. and abroad, in the event the expatriate needs care when returning for holidays or family visits.

The official source of Expatriate Benefits is the Expatriate Benefits page at Business.com