International HRM Assignment: Expatriate Package and Company Threats

This assignment delves into the realm of International HRM, specifically focusing on the intricacies of expatriate packages. It begins by defining the components of a traditional expatriate package, which includes housing, hardship bonuses, transportation, educational support for children, and healthcare. The assignment then explores the rationale behind companies offering such comprehensive benefits, highlighting their role in attracting and retaining talent for international assignments. The core of the assignment lies in analyzing the limitations of these packages, especially in the context of rising costs and evolving business needs. The assignment discusses the financial burden associated with traditional expatriate packages, which can be several times the base salary. It also addresses the need for companies to revise their policies to adapt to changing circumstances and create cost-effective alternatives. The assignment emphasizes the importance of understanding the financial implications and the need for strategic adjustments in managing international assignments effectively.

Running head: INTERNATIONAL HRM
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Name of the Student
Name of the University
Author Note

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Question 1.
Describe the content of a ‘traditional’ expatriate package, and the reasons of the
company to provide such benefits. What limitations do you see in this contract when it comes
to handling the company’s emerging threats?
A traditional expatriate package consists of housing facilities for the expat, hardship
bonus that is often calculated to be a huge part of the base income of the expat. The expat is
often provided with an automobile service along with the fuel and maintenance, which is
undertaken by the concern under which the expat is employed. The expatriate package also
covers the international level private schooling of the children of the expat, healthcare
facilities for the entire family of the expat. The traditional expatriate package also cover the
cost of the round-trip airfares of the entire family to the home country of the expat. The expat
should also be provided with tax equalization with his home country. The company should
provide these benefits to the expat so that they may agree to relocate to the other country and
help the company to expand their business.
According to the given case study, Akiko may face a number of limitations that are
stated in the expatriate package. The expatriate package that was extended to her included an
additional cost for the concerned company, which amounted to almost three times the basic
salary that she had been receiving (Andresen, 2013). Thus, the concerned company had taken
the decision of limiting the post of the expatriates to the critical posts only. The expats were
generally wanted to relocate to the country where they were sent for assignments. Thus, the
company costs were on a rise. In order to tackle this the company decides to pay the expats
on the salary schema that exists in the host country. In the current scenario that the concerned
firm is facing, there have been expats who have been almost over eight long years in a
foreign country and are not expats any longer. Thus, the company had no other choice but to

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revise their policies regarding the international mobility so as to create an alternative that
would prove to be cost effective.

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References
Andresen, M. (2013). Local and International? Managing Complex Employment
Expectations.