Mercer launches Compensation Localizer for expatriate pay

Mercer launches Compensation Localizer for expatriate pay

Mercer launches Compensation Localizer for streamlining pay for expatriates

  • 15 July 2014
  • Unites States, New York City

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 the Compensation Localizer, visit

About Mercer

Mercer is a global leader in talent, health, retirement, and investments. Mercer helps clients around the world advance the health, wealth, and performance of their most vital asset – their people. Mercer’s more than 20,000 employees are based in 42 countries and the firm operates in over 130 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy, and human capital. With over 55,000 employees worldwide and annual revenue exceeding $12 billion, Marsh & McLennan Companies is also the parent company of Marsh, a global leader in insurance broking and risk management; Guy Carpenter, a global leader in providing risk and reinsurance intermediary services; and Oliver Wyman, a global leader in management consulting. For more information, visit Follow Mercer on Twitter @MercerInsights.


Figure 1 – Mercer Compensation Localizer Report