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back to index backGLOBALtalk December,  2014


Managing global compensation: the quest for compliance

Employees on international assignment present a challenge to HR and payroll functions in organizations. There is increasing scrutiny and enforcement from tax authorities, the length and structure of assignments are changing, and businesses continue to demand a return on their investment in talent.

This report brings together the views of internal mobility functions working across 17 industry sectors. Combined, they manage over 20,000 international assignees worldwide, and in common, they face various challenges to achieve robust, compliant and cost effective assignee compensation processes. It provides a timely refresh of our report Managing global compensation: time to take control? published in 2013.

To download 24-page report, please click here.

The survey focuses on three key themes:

- What are the priorities in reviewing the global compensation model for international assignees?
- How have these priorities changed over the last 12 months?
- What action has been taken to address these priorities?

One year later: what’s changed?

In 2014, while the picture is similar overall, employers have shifted their focus to challenges related to compliance with country payroll reporting and withholding obligations. Payroll compliance is firmly on the radar for tax authorities worldwide, and in today’s regulatory environment this focus is likely to increase.

What are your organization’s top three business challenges in managing assignee compensation?

While the majority of our survey respondents report that they have not experienced findings and payroll omissions as a result of external and internal audits, there remain considerable concerns that local payrolls lack sufficient knowledge of assignee compensation reporting.

Validating payroll data at the outset, improving communication with local payrolls and comparing pay instructed with pay delivered could, for many organizations, bring significant clarity for local payroll teams and improve compliance as a result.

Further, our survey highlights that certain countries are considered more complex than others from a payroll compliance perspective.

To download 24-page report, please click here.

Source: Ernst & Young
- GAI




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