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International Remuneration (Objectives (Establish and maintain a…
International Remuneration
Definition
It is the pay practices covering employees who move across national borders, including headquarters expatriates and third-country nationals.
Objectives
Establish and maintain a consistent relationship between the compensation of employees of all affiliates, both at home and abroad
Maintain compensation that is reasonable in relation to the practices of leading competitors
Facilitates transfers between foreign affiliates and between home-country and foreign locations in the most cost-effective way for the company
The policy should be consistent with the overall strategy, structure, business needs of the company
Attract and retain employees who are qualified for overseas services
Give due consideration to equity and ease of administration
Approaches
Local
Localisation
Going rate
Contemporary
Lumpsum
Buffet
Negotiation/bargaining
Cluster system
Performance-based
Traditional
Balance sheet
Factors affecting the design of international remuneration package
Culture/Religious
Social customs
Gender
Values
Government controls/ regional practices
Legislation
Internal
Job evaluation and performance appraisal
The employee
Business strategy
Technology
External
Labour Laws
Labour Unions
Society
Cost of Living
The Economy
Labour market