Tapping into indirect compensation to recruit foreign talent

March 15, 2023

U.S. companies are seeking a competitive edge in attracting foreign talent. Before offering a sign-on bonus and/or a generous housing differential allowance, consider tapping into indirect compensation from home value appreciation.

When you support a U.S. home purchase, your employees may be able to accumulate a sizeable nest-egg over the course of their U.S. assignment. Housing appreciation can generate considerable equity to increase financial benefits without ongoing company cost. 

This may be an attractive recruiting incentive. Candidates appreciate the chance to participate in the benefit of the U.S. housing market. By offering U.S. home purchase benefits, a company may attract more qualified candidates. And, because market appreciation funds most of the benefit, the return on investment (ROI) on reimbursed closing costs is high.  

For example, at the start of a 5-year U.S. assignment, an employee buys a home for $500,000, and is reimbursed for closing costs of 3% ($15,000).  If that home appreciates at 5% per year, the equity gain over the course of the assignment would be more than $130,000.

This emerging best practice has been slowed by perceived barriers that can be overcome or may not actually exist. These perceived barriers include:

  • Some companies presume that foreign home purchase would be prohibited in the U.S., but it is not.
  • Some expect that subsidizing home ownership will increase their costs, but considering outlays for housing differentials — temporary and corporate housing — the tax deductibility of mortgage interest and some property taxes can be advantageous. 
  • Company concerns about financial exposures from employee defaults are unfounded because the employee borrower bears full responsibility after the loan is closed.

Despite the perceived difficulty of establishing U.S. credit and securing a mortgage, it's important to find a lending organization with a streamlined mortgage process for international borrowers.

Corporate employers and RMCs can now take a fresh look at supporting international borrowers for U.S. home purchases. U.S. Bank representatives are available to help you build an international borrower policy that will:

  • Improve talent attraction and retention: By fostering U.S. homeownership, a company can gain key people who, by establishing their credit and becoming rooted in local residency, earn employee loyalty.

  • Bolster international compensation: By helping your employees purchase U.S. real estate, you start them on the path to generational wealth, at little company expense.

  • Enhance RMC/client partnerships: Clients and RMCs can take this approach to serve more customers and reap mutual financial rewards.


To learn more, contact your U.S. Bank relationship manager.

Read more about how homebuying and mobility trends impact employees and connect with corporate relocation experts and home lending specialists.

Related content

Best practices for optimizing the tech lifecycle

4 benefits of independent loan agents

Innovative payroll solutions may help attract hourly workers

Changes in credit reporting and what it means for homebuyers

What’s the difference between Fannie Mae and Freddie Mac?

How jumbo loans can help home buyers and your builder business

Crack the SWIFT code for sending international wires

The reciprocal benefits of a custodial partnership: A case study

Ways prepaid cards disburse government funds to the unbanked

The client-focused mindset: Adapting to differing personality types

Technology strategies to complement your business plan

An asset manager’s secret to saving time and money

A checklist for starting a mobility program review

Easing complex transactions: Project finance case studies

CFO survey: A shifting focus on ESG in business

What corporate treasurers need to know about Virtual Account Management

Why retail merchandise returns will be a differentiator in 2022

Look to your custodian in times of change

Challenging market outlook reveals the power of partnership

Save time with mobile apps for business finances

High-cost housing and down payment options in relocation

Managing complex transactions: what your corporate trustee should be doing

New technology streamlines M&A transactions

Tapping into indirect compensation to recruit foreign talent

At your service: outsourcing loan agency work

Automate escheatment for accounts payable to save time and money

Why other lenders may be reaching out to your employees

How institutional investors can meet demand for ESG investing

Avoiding the pitfalls of warehouse lending

Digital Onboarding helps finance firm’s clients build communities

Middle-market direct lending: Obstacles and opportunities

Treasury management innovations earn Model Bank awards

Sustainability + mobility: Trends and practical considerations

What is CSDR, and how will you be affected?

Bits and bots: CRE trends for 2023 and beyond

Time is money: Intelligent Payment Routing saves businesses both

Overcoming the 3 key challenges of a lump sum relocation program

How RIAs can embrace technology to enhance personal touch

Mortgage buydowns and subsidies in today’s talent-focused relocation policies

For today's relocating home buyers, time and money are everything

Crypto + Relo: Mobility industry impacts

CFO report: Driving growth via new business models and technology

CFO insights: Leading the recovery for sustainable growth

ABL mythbusters: The truth about asset-based lending

Flexibility remains essential for public sector workforces

Easier onboarding: What to look for in an administrator

ABCs of ARP: Answers to American Rescue Plan questions for counties

The client-focused mindset: What do clients expect?

Webinar: CRE Digital Transformation – Balancing Digitization with cybersecurity risk

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.