Expatriate Human Resource Management
Expatriate Human Resource ManagementBy:Student IDemail addressCourse TitleTutorInstitutionCompensation The total amount an employee can receive for the work performed by every worker in monetary ad non-monetary terms is known as compensation. It is such a critical issue in every organization especially in the strategic plan. It acts as a key factor to the attitudes and behaviors of the employees which can only be determined in retention of talented employees. Employers are always left with the task of closely paying attention to compensation programs given the cost that can be associated with it. Total compensation includes the actual salary plus all the benefits. It can always be 23 percent or more of the revenues of the company, though it always varies with the industry and the geographical locations (Keating 2004)International compensationWhen designing and coming up with compensation package for professionals for international assignments it is good to keep in mind that the knowledge of taxation, employment laws, and the fluctuation in foreign currency. The socio-economic conditions of the country have to be taken into consideration as well (Du Plessis 2010). Â Developing a compensation package for the parent country national is easy but difficult to manage the host and third country nationals. The compensation policy should always be in line with the structure of the organization, business needs and overall strategy of the organization.
Domestic compensationThis is given to an employee who to lives within the borders of the country and is a citizen of that country. An expatriate is expected to relocate abroad, with or without family, but for a domestic worker he/she is at home and no need to. There are some more advantages in terms of benefits and allowances expatriates enjoy compared to domestic employees (Festing, 1997). Table listing all the compensation and benefits of the local and expatriate employeeInternational compensationDomestic/local compensationCost-of-living Allowances (COLA)Better education than private-sector workers.Mobility premiumsIncreasedworkers’ wage levelsEnvironmental or hardship premiumsNo cost of living benefitsHousing and utilities allowanceMedical coverGoods and services allowanceBase salaryTravel ExpensesChildren EmployeesHousing and utilities allowanceEducation AllowancesPension planAllowances for Spouse AssistanceInsurance coverCompensation Calculation Approaches