Are there any locations in the US that still pay cost of living adjustments? Trying to understand consistency or lack of in our policies. For those unfamiliar, it has been practice when moving people from say Houston to a higher cost of living location to give them a temporary salary adjustment while they live in the higher cost location. Inverse is also true. if you move from day Faitgax to Houston you would expect a salary reduction.
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The cut of COLA for domestic relocations was/is unfair. Those whining about expats receiving premiums and COLA, do not understand the nature of this business. Much cheaper for the company to put expats in locations that do not have a domestic XOM affiliate. For having the experience and knowledge to operate in remote location without supervision, the company provides a premium. Sometimes, the company puts expats in countries that do have local affiliate, but do not have representatives of a particular function. Sometimes, the company uses expats for knowledge transfer and development. As we support businesses/projects around the world, we leverage competent self-directed personnel from our major affiliates (US, UK, Malaysia, Australia) to fill those roles.
When I last had a COLA is was a temporary adjustment for XX months following my move to the new location. (I seen to recall 12 months but it could have been 24.) It was definitely not meant to last the entire time I was at that location but act as a bridge.
Good thing. Now get those greedy expats who have been wasting company and investor money for a long while brought back, shamed and fired!
Ouch. That hurts. Would have been more equitable and fair to cut everyone’s salaries. That’s like a 30% hit to some people while their bills remain the same while Houston only gives up the 7% match.
The Cost of Living Adjustment benefit was pulled for all upstream locations eg Bakken, Delaware (Carlsbad & Midland) and Alaska.