Assignment cost management
Why should you have a cost projection?
A cost projection is a point-in-time predictor of costs. Having a cost projection early in the decision-making process will help management with potential financial impacts that will allow them to make better assignment-related decisions based on the business opportunity. Based on a good cost projection, less expensive solutions could be considered, such as sending an employee on Short-term assignment or commuter agreement.
How can a cost projection be used and utilized?
Once a cost projection has been approved by the management and the assignment has been initiated, the important job starts from there – collect all actual costs and do a cross-check with the projection. With comparison charts and tables in SWAIRI you can prepare reports on Deviation between the projected and the actual costs. This will again help management to analyse possible root-cause for the cost deviation.
Projecting the Assignment cost – An important part of the Assignment management!
The direct payment of certain expenses by an employer is considered a benefit-in-kind. In many countries, certain benefits-in-kind will not be fully taxable to the employee. Examples of common benefits-in-kind are housing, cars, and club dues.
What is a cost projection?
Swairi provides a high-level cost projection tool, which is an advanced and flexible calculator in which standard/default cost elements based on experience are preselected, but with the option of adding or removing auxiliary cost elements due to the client’s specific mobility policies and the employee’s individual assignment criteria. Tax and social security costs will then be projected on basis of the selected elements. International assignment costs are gathered from many sources for such cost projections and established routines. Factors such as foreign exchange rates, cost of living index changes, tax law changes, and travel costs can impact these cost estimates. With the SWAIRI tool you can project the costs over the life of the assignment.
Plan for various possible scenarios of outcome with the help of cost projection
SWAIRI will help companies producing more detailed cost projections quickly and periodically during the life of the assignment for various scenarios. It can be based on family size, housing requirements, tax laws, selection of social security membership or any other variables that might affect the assignment costs.
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