Over the years, several different compensation methods
have been developed to determine the salaries companies offer their
employees who are being sent on long-term international
assignments. In addition to the host country and the designated
position, the compensation package is usually one of the essential
aspects for employees. The defined compensation as well as any
additional benefits play a decisive role for a potential expatriate
whether to accept the proposed mission abroad. Consequently, every
employer with the need of international assignments aims to apply
an appropriate and attractive compensation method in order to
strengthen talent mobility and employee retention.
Originating from an accounting term that describes a calculation
where debits and credits must match, the Balance Sheet Calculation
is a well-known and widely used way of calculating an expatriate
compensation. Several surveys and benchmark reports published in
the last years suggest that up to
