In this we are learning about the different compensation packages or methods that an organization designed or developed for the employees in their companies. I am also one of the employee in the office and recently got promotion as a human resource manager. Our company is established in many countries with various ideas and resources with huge number of employee’s. more over our company has high reputation throughout the world. The company need to fulfill the needs of every employee without causing any effect to the business (Warneke, 2011).
They have to provide the medical insurance for the employee and their family members, long term insurances, leave benefits when they are in need, some retirement benefits that are very important for every employee (Gerhart, 1994).
It is easy to control the workers at one place, but the above mentioned company has many branches all over the world. So, it will be difficult for the manager to maintain and manage the every employee in all branches to work properly. Because after the retirement there is no employment for the worker, the company need to support him financially for the work he has done for the development of the business throughout the life (Osibanjo, 2014).
Warneke, D., & Schneider, M. (2011). Expatriate compensation packages: what do employees prefer?. Cross Cultural Management: An International Journal, 18(2), 236-256.
Osibanjo, A. O., Adeniji, A. A., Falola, H. O., &Heirsmac, P. T. (2014). Compensation packages: a strategic tool for employees’ performance and retention. Leonardo Journal of Sciences, (25), 65-84.
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Evaluation of compensation is exponentially more complex, particularly when it encompasses compensation to do with international jobs. Compensation packages often differ with companies; however, items that are common in international offers include housing allowance, payment of tax, trips home and spousal employment help (Bonache& Paz-Aparicio, 2015). In this case, having offices in different countries implies having people working in different counties. Therefore, the compensation strategy, in this case, will be determined on the context of changing economics, politics, social and business conditions. The above implies that I will consider both regional and/or local, and global and/or international dynamics.
For instance, the compensation package will be determined on the basis of trade unions. According to Correa and Lel (2016), different nations have trade unions. These trade unions outline how employees should be compensated, therefore, need for offering the packages that are close to the defined value. Again, security. Some counties are more secure than other countries. In this case, compensation for people in more secure counties should be lower compared to those in less secure nations (Bader, 2015).
Additionally, the occupation. Some occupations such as army need higher compensations while others such as teaching should have limited compensation packages; however, the geographical location should be considered. Lastly, social contracts and the implications of public policies. When people are being employed, they sign a contract. Often, the terms of compensation are outlined. Therefore, it is important that these terms are revisited when compensation is being made (Bonache& Paz-Aparicio, 2015).
Bader, B. (2015). The power of support in high-risk countries: Compensation and social support as antecedents of expatriate work attitudes. The International Journal of Human Resource Management, 26(13), 1712-1736.
Bonache, J., & Paz-Aparicio, C. (2015). 13. Compensation and total rewards: trends in emerging markets. Handbook of Human Resource Management in Emerging Markets, 293.
Correa, R., &Lel, U. (2016). Say on pay laws, executive compensation, pay slice, and firm valuation around the world. Journal of Financial Economics, 122(3), 500-520.
Last Updated on August 20, 2020 by Essay Pro