Total Assignment Cost (TAC)
What is Total Assignment Cost (TAC)?
A comprehensive calculation of all direct and indirect costs associated with sending an employee on an international assignment, used to assess ROI and inform policy decisions.
Total assignment cost includes all expenses related to an international assignment, from compensation and benefits to relocation, housing, tax equalization, immigration, travel, and administrative overhead. TAC provides a complete picture of what an assignment truly costs, enabling organizations to make informed decisions about deployment, policy design, and vendor management.
Direct costs typically include base salary, allowances (COLA, housing, hardship), tax equalization payments, relocation expenses, immigration fees, and travel costs. Indirect costs may include administrative time, productivity loss during transition, and the opportunity cost of the employee's absence from the home office.
Organizations that track TAC consistently can benchmark costs across assignment types, corridors, and business units. This data is essential for demonstrating the value of the mobility program to senior leadership and for identifying opportunities to optimize costs without compromising employee experience or compliance.
Related Terms
Balance Sheet Approach
A compensation methodology for international assignees that aims to keep employees financially 'whole' relative to their home country, by separately tracking income, taxes, housing, and goods and services costs.
Mobility Program
The structured set of policies, processes, vendors, and technology an organization uses to manage employee moves and international assignments at scale.
Cost of Living Adjustment (COLA)
A compensation supplement given to assignees to account for differences in the cost of goods and services between their home and host locations, ensuring their purchasing power is maintained.