Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Balance sheet approach expatriate compensation

30/03/2021 Client: saad24vbs Deadline: 2 Day

Objectives of international compensation

When developing international compensation policies, an MNE seeks to satisfy several objectives. First, the policy should be consistent with the overall strategy, structure and business needs of the multinational. Second, the policy must work to attract and retain staff in the areas where the MNE has the greatest needs and opportunities. Thus, the policy must be competitive and recognize factors such as incentive for foreign service, tax equalization and reimbursement for reasonable costs. Third, the policy should facilitate the transfer of international employees in the most cost-effective manner for the firm. Fourth, the policy must give due consideration to equity and ease of administration.

The international employee will also have a number of objectives that need to be achieved from the firm's compensation policy. First, the employee will expect the policy to offer financial protection in terms of benefits, social security and living costs in the foreign location. Second, the employee will expect a foreign assignment to offer opportunities for financial advancement through income and/or savings. Third, the employee will expect issues such as the cost of housing, education of children, and home leave to be addressed in the policy.

If we contrast the objectives of the MNE and the employee, we of course see the potential for many complexities and possible problems, as some of these objectives cannot be maximized on both sides. The 'war stories' about problems in international compensation that we see in HR practitioner magazines is testimony to these complexities and problems. McNulty et al. also allude to these problems in their studies of expatriation, particularly in the Asia Pacific region.16

However, if we take away the specialist jargon and allow for the international context, are the competing objectives of the firm and the employee fundamentally different from that which exists in a domestic environment? We think not. We agree with the broad thrust of an influential article by Milkovich and Bloom17 which argues that firms must rethink the traditional view that local conditions dominate international compensation strategy. This is again another application of the ongoing balancing act between global standardization and local customization. We will return to these issues at the end of the chapter after we have covered some of the technical aspects and complexities of compensation in an international context.

KEY COMPONENTS OF AN INTERNATIONAL COMPENSATION PROGRAM FOR EXPATRIATES

The area of international compensation is complex primarily because multinationals must cater to three categories of employees: PCNs, TCNs and HCNs. In this section, we discuss key components of international compensation as follows.

Base salary

The term base salary acquires a somewhat different meaning when employees go abroad. In a domestic context, base salary denotes the amount of cash compensation serving as a benchmark for other compensation elements (such as bonuses and benefits). For expatriates, it is the primary component of a package of allowances, many of which are directly related to base salary (e.g. foreign service premium, cost-of-living allowance, housing allowance) as well as the basis for in-service benefits and pension contributions. It may be paid in home or local country currency or a combination of both. The base salary is the foundation block for international compensation whether the employee is a PCN or TCN. Major differences can occur in the employee's package depending on whether the base salary is linked to the home country of the PCN or TCN, or whether an international rate is paid. (We will return to this issue later in the chapter.)

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Writing Factory
Ideas & Innovations
Engineering Help
Accounting & Finance Mentor
Solution Provider
Solutions Store
Writer Writer Name Offer Chat
Writing Factory

ONLINE

Writing Factory

I have read and understood all your initial requirements, and I am very professional in this task.

$155 Chat With Writer
Ideas & Innovations

ONLINE

Ideas & Innovations

I have read your project details. I can do this within your deadline.

$170 Chat With Writer
Engineering Help

ONLINE

Engineering Help

I am known as Unrivaled Quality, Written to Standard, providing Plagiarism-free woork, and Always on Time

$25 Chat With Writer
Accounting & Finance Mentor

ONLINE

Accounting & Finance Mentor

I will cover all the points which you have mentioned in your project details.

$163 Chat With Writer
Solution Provider

ONLINE

Solution Provider

I am known as Unrivaled Quality, Written to Standard, providing Plagiarism-free woork, and Always on Time

$128 Chat With Writer
Solutions Store

ONLINE

Solutions Store

Give me a chance, i will do this with my best efforts

$152 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Maximum lvr for home loan - Interview of an entrepreneur assignment pdf - Chobani target audience - Health Services for Special Population-Focus on Behavioral Health - Employer information requirements bim - The distribution channel is designed based on - Arema manual for railway engineering chapter 8 - Chemistry help - Impacts of tourism slideshare - A centrifuge accelerates from rest to rpm - 1300 words double spaced - The common denominators of luxury brands are quality and - Joy jalal landmark forum leader - Assignment 1: Creating and Communicating a Security Strategy - Advantages and disadvantages of internal fertilization - Microsoft publisher vs indesign - The percentage method aids in calculating: - Ir spectrum of d limonene - Joe and jess bend it like beckham - Billy collins on turning ten audio - Ignore non routable ethernet - Data Science Case Analysis - University of southampton bursary - Flinders university site map - Veterinary surgeons board qld - What is the square root of 512 - What ice cream flavor am i - Electrical spotters course geelong - The CEO's Challenge - Jamaica has a comparative advantage in the production of - Ship rock picnic ground - Need 600+ words with no plagiarism and 2+ schoarly references in APA Format. - Arc flash study every 5 years - Dr irene man hsiao hazleton office - Thermal conductivity experiment pdf - Positive effects of hidden curriculum - Sex linked traits worksheet hemophilia - Quantify a network in order to map it, ensure everything in the system is reporting correctly, and demonstrate one of the first steps a hacker would take to try to gain access to the system. - Math magician 100 questions in 5 minutes - Darwin river dam levels - BUSN 602 Week 8 forum - Self-introduction - Word chapter 2 formatting and customizing documents - Car tyre repair kit kmart - Psychology core concepts 7th edition chapter 1 - Amp flexible lifetime protection pds - Big mama's chicken st agnes - Schedules of reinforcement quizlet - Everything's an argument mla citation - Freedom ride 1965 diary entry - Dewalt radio dw911 parts - Er diagram for property management system - Emerson network power surge protection - Role of the german princes course hero - Edinburgh handedness inventory download - Strategic Plan - The jilting of granny weatherall theme - Reflection and Discussion Forum Week 7 - Divine roles across cultures - Colonel sanders education - Puente hills toyota case study - Inlanguage boutique brunswick east - University of ottawa political science - Opal consulting group pty ltd - Shipwreck cafe menu - Intermediate accounting with air france klm annual report - The albatross poem analysis kate bass - Www bls gov ooh az index - Ahima data quality management model - Forever all products image - E commerce at yunnan lucky air case study - What is a corrie - Cmt interview clinical scenarios - Activity 1.2 6 555 timer answers - Geze 24v door closer - BUS320: E-Commerce and E-Business - Writing DQ 6-2 - Chlorine nitrate lewis structure - Change management - Penn foster writing process part 1 - Why is mary reibey on the $20 note - Communicating in groups applications and skills 10th edition - Market offerings are limited to physical products - Much ado about nothing sparknotes - Macbeth act 4 questions - Bob the builder ball pit - Domain and Parent/Caregiver Interview - Honor and Emotional Reactions - Uniform electric field diagram - Business Ethic questions 400 words - Early voltage mosfet formula - I am legend free book - Five importance of home economics to individual - Abercrombie and fitch market segmentation - Ieee journal of the electron devices society - Target vrio analysis - W5 WORK - Maroondah dam reservoir park - Quality and safety in nursing wgu - A compendium of conjugate priors