18-08-2014, 01:03 PM
INTERNATIONAL COMPENSATION
INTERNATIONAL COMPENSATION.pptx (Size: 169.93 KB / Downloads: 12)
INTRODUCTION
Many changes are occurring in all areas of domestic and international compensation from flexible compensation to creative result-sharing programmes.
As companies are becoming more global , compensation strategies must be shared across borders , through industries and within organizations.
The nature of assignment of the employee , to a large extent ,determines the method of compensation .
INTERNATIONAL COMPENSATION MANAGEMENT
MNC’S are facing difficulties in evolving compensation package due to the following reasons:
1. Economic conditions of country.
2. Employment condition of host country.
3. Taxation laws of host country.
4. Currency fluctuations in host country.
5. Inflation situation in host country.
The result is that expatriate’s cost is more than the employees of the host country
BASIC PAY
It is the basic amount that an expatriate receives in home country.
The expatriate’s salaries typically are set according to according basic pay of the home country.
For example US expatriates will have a base salary that reflects the salary of US levels .
The salaries are usually paid in home currency , local currency or may be combination of both.
The base pay also serves as the benchmarks against which bonuses and benefits are calculated.
Conclusion
The globalization has made compensation packages global.
However, it may vary as per the economic condition, performance, organizations etc.
Aim should be to develop a strategy so that it address long term objectives and make organization responsive to local variations as well as future changes and competitive pressure.