Differential Change Analysis (DCA)
Changes in goods and services differentials are rarely well-understood by expatriates. International assignment managers and administrators can spend too much of their time explaining every change to individual assignees.
To help expatriates better understand these changes and reduce the burden on international assignment teams, ORC has developed the Differential Change Analysis (DCA).
The DCA is a unique "pay statement" that provides expatriates with an easy-to-understand explanation of changes to their goods and services differential.
- The DCA clearly describes changes to each expatriate's pay, and provides a thorough explanation of the factors behind any fluctuations in the differential.
- The exact amount of each factor is shown, along with the impact on the overall differential amount.
- The DCA can be combined with a broad range of communication materials to cover every aspect of international assignment compensation, in terms that will be easily understood by both new and experienced expatriates. One resource is ORC’s award-winning Virtual International Compensation Knowledge Instructor (VICKI) website; two of its eight sections are included with the DCA, and you may choose to provide access to the full tutorial as an additoinal option.
ORC's DCA provides expatriates with individualized explanations of how changes in these factors affect their company-provided differential for goods and services:
- Exchange rate changes,
- Relative price movement of goods and services,
- Salary and family size changes, and
- Expenditure pattern changes.
To learn more about DCA or ORC's other expatriate communication services, please contact your ORC consultant or local ORC office.