The Implications of the Euro for Expatriate Policies and Practices

Abstract

On January 1, 1999, the euro became an officially recognized currency. From that point until February 2002, employers have been busy introducing the new currency into their administrative, financial and human resources systems. Pros and cons on this topic remain the center of debate, prompting Organization Resources Counselors, Inc. to survey multinational organizations headquartered around the world in a series of reports to determine potential changes in their expatriate and local-national policies, as well as their opinions about future consequences. Overall, participants are limiting their efforts in the area of expatriate management—compensation approaches, use of allowances and so forth—and focusing a large part of their energy on legislative compliance with regards to converting pay elements to one currency. Many organizations have adopted a “wait and see” attitude, recognizing that change—although inevitable—is likely to be gradual.