How do you reply to the following discussion post? Minmum of 150 words w/reference.
Companies considering moving into the international market need to make many considerations involving not only operational and logistical costs, but also strategic compensation of employees, cultural awareness, and barriers to business.
According to Ms. Carlson of Mercer Human Resource Consulting, one of the world's leading HR consulting organizations, "As companies expand their global reach, they need to make sure their compensation and other reward programs support their business strategy.
An effective global compensation strategy creates consistency in pay management, facilitates global employee mobility, and ensures that the money spent on compensation is used wisely. That's why we're seeing heightened interest in global compensation programs among multinational firms" (HR.com, 2017). I believe working with local HR firms in the target country is the best way to find out what appropriate compensation packages to use to meet the market standard of the company.
For American workers or supervisors running operations overseas, I believe the best compensation strategies would be to boost family programs such as private schools in the new country, paid vacations, providing day care and free language lessons would all be appropriate.
A new survey of global employers from Mercer Human Resource Consulting reveals that 85% currently have a global compensation strategy in place.
"Pay strategies play an important role in the success of multinational organizations," says Mark Edelsten, a London-based international consultant with Mercer. "Increasingly, pay is being managed from a global perspective - to facilitate global expansion efforts, better managelabor costs, create internal equity, or ensure effective governance.
In addition, these strategies typically apply to all employees, not just a select group, such as executives" (HR.com, 2017). I believe the three important issues that must be addressed are: In what country will the initial expansion be launched, how much funding or resources are available for employee compensation, and what compensation is considered fair market value in the target country?
References:
Dessler, G. (2013). Human Resource Management (13th ed). Upper Saddle River, NJ: Prentice Hall Inc.
Multinational Firms Favor Global Approach to Compensation Management. (2005, March 10). In Human Resources: Benefits.