What three years of host-based pay for new assignments taught us

Fair challenge on the saving. It is the direct package cost only and does not include vacancy cost, which I do not have a reliable figure for. The 15% threshold idea is close to where we are heading, so it is useful to know it has held for someone else.

I would push back a little on the conclusion. The problem with high-to-low moves is not host-based pay, it is that those moves are usually company-initiated and for a fixed term. If the person is coming home in three years you cannot disconnect them from the home pension and home salary progression. Host-based suits people who might stay.

Did the 22% saving include the cost of the assignments you could not fill, or the delay in filling them? When we ran the numbers properly, two vacant plant manager roles for five months each wiped out most of a year of savings.

Nine exceptions in thirty is the number I would focus on. Once line managers learn that exceptions are available, the policy is the exception process. We had to move approval to one person at group level before the rate came down from about a third to under 10%.