When determining the remuneration for your international assignee, it is critical to understand the cost of living issues. A look at the fundamentals of COLA and the factors influencing the cost of living differences.
Anybody who has ever been on holiday abroad, would have pulled out a calculator, at some point, to compare prices between the holiday destination and home. Not many people know, however, that this apparently simple comparative process is at the foundation of a whole industry sector, with sophisticated tools and methodologies. Today, a handful of companies, sometimes referred to as “data providers”, supply very detailed information regarding the differences in the price of goods and services for hundreds of locations worldwide, comparing items ranging from cheeseburgers to taxi rides.
