Develop a global compensation plan


How do you reply to the following discussion post? Minmum of 150 words.

If my company was moving into international operations, there would be a few considerations to take into account towards a strategic compensation plan. I would have to have a clear understanding the company's strategic goals with the move into the international market to focus my research. As Gershman (2003) states, "A sound global rewards strategy that is aligned to business objectives is necessary to develop a global compensation plan." One would assume that a move of this magnitude is focused on permanent, global growth and thus will require a competitive, enticing, and rewarding compensation program to sustain a viable workforce in order to move the company's objectives forward.

Since each continental population provides its own unique set of challenges and differences, here are some of the considerations I would focus in on; how many hours people traditionally work a day, the country's labor laws, how people value themselves in their society, social hierarchies, the country's economy and growth, what competitors are doing, associated costs in international business, and what people see as extrinsic or intrinsic motivators in work performance. Another consideration is the workforce layout and do you compensate all equally or based off a different variable. Depending on the country location, do you hire a majority of host country nationals, or third country nationals, will American workers be included and moved to the new location. Although this all sounds very complicated and without minimizing what it would truly take; simple plans have been shown to be the most effective, (Gershman, 2003).

Bottom line is what Dessler (2013) states as the ultimate objective, "The compensation plan should first advance the firm's strategic aims---management should produce an aligned reward strategy."


Dessler, G. (2013). Human Resource Management (13th ed). Upper Saddle River, NJ: Prentice Hall.

Gershman, H. (2003). Quick Tips for Designing a Global Compensation Plan. CanadianNews, 11, 2.

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