This paper will discuss the challenges of global compensation structures for multinational organizations and highlight some issues that arise from maintaining a global employee presence. In addition, this paper will discuss adherence, or lack of, to various United States compensation practices and policies and other general best practices that are recognized globally. The Expatriate Compensation The first step for a multinational organization’s human resource department is to develop a global compensation structure that understands the “political, social, legal, and cultural differences” (Haile & Williams, 2011, p. 25) of the countries in which they operate. It is not only essential to have factual knowledge of the local nation’s compensation and benefits best business practices but ensuring that all involved have cultural sensitivity is oftentimes difficult when structuring global compensation packages. The goal of a global compensation structure is to ensure that the organization attracts and retains high quality employees that are interested in overseas assignments and wi... ... middle of paper ... ...g the employer out of employment law?
It is obvious that undocumented immigrants give more to the economy, than they get. They work hard, and it all comes down to giving it back to the economy in different ways, whether it 's by paying rent, taxes, food, clothing, etc. Immigrants not only help us but they give more than they get. According to the United States Department of Labor, more foreign born immigrants are self employed than the native born here in the U.S. Immigration has both its negative and positive effects on the economy. For example on the positive side, immigrants are taxpayers, entrepreneurs, job creators, and consumers, and on the negative side, they are using government services that should not be provided to them.
Discrimination in Today’s Society Income inequality, poverty and discrimination are issues that the United States is currently facing. The United States is among one of the countries that have the highest average household income, however this does not accurately represent each household. Data shows that there is significantly less income inequality over a longer period of time rather than in a single year because income mobility is more substantial over time. The more period of time that is considered for an individual, the more equal the distribution of income becomes. Government taxes and transfer significantly reduce income inequality by redistributing income from higher income groups to lower income groups.
(Greene, 2006) It's also believed that if the US continues to trade freely with the overseas countries then the powerful drag of their far lower wages will begin dragging down American's average wages. (Greene, 2006) Economist has found that tax cuts offered to large manufactures have caused productivity to go up. The manufactures are actually given tax breaks to be able to purchase more machinery to do the jobs and therefore fewer laborers are needed, causing a large number of workers to be displaced. The tax act that was initiated by Bush administration for big businesses was the "bonus depreciation". Under this act the more the companies spend on equipment the less the tax they have to pay.
.so it is important to get union agreement to changes in work rules before committing to an investment. Secondly, international firms sometimes need to lobby by threatening to move the operation to other countries. Thirdly, it is important to have codes of conduct to deal with industrial relation issues. The importance of this code of ethics have increased due to factors like development of universal standard called the Social Accountability 8000. By having the own code of conduct will help to follow this
However there is overwhelming evidence that money is an important motivator for most people. Base salary is important, but it based on time and not performance, hence programmes like variable pay and skill based pay should be adopted to increase motivation. Also taking into consideration of the diverse work force, organisations should consider both financial and nonfinancial tools that are flexible for attracting, motivating and retaining employees. Motivation will be higher when a compensation system is well design, however this will vary between organisations, employees and their objectives.
The legal framework of equal opportunities provides organisations with clear guidance on how to avoid breaking the law but diversity initiatives in the workplace is a urgent issue and may provide them with a sustainable advantage over their competitors. Admittedly, it is up to organisations to realise that they need to build constructive relationships with employees and customers before seeking radical change and through a balanced system of equality and diversity management to gain an advantage. Added to this, management will play a large part in determining how tangible and intangible barriers could be overcome and how external and internal difficulties could be transcended with carefully planned strategies, which would be integrated effectively in organisation’s practices and policies. Furthermore, top management should not just delegate responsibility to line managers, instead has a critical task to handle. It must invest to train line-managers and keep them well informed about the company’s vision and aspirations and engaged them with the process of planning and implementing the equality and diversity strategy.
A company must be reasoning of changes, flexible, and willing to prepare for them when necessary. External competitiveness is one part of organizations compensating system. If any company wants to compete with others in the business world today their compensation plans should be planned similar to other organization, or if possible far better and strategic. A simple compensation system won’t work in today’s business because of all the competition that is out there. In order for a company to stay externally competitive, it needs to have a diverse work force and offer divers forms of pay.
having a global work is riskier than domestic’s, as the possibility of failure is higher. Developing global leaders is more complicated than domestics leaders. In addition to the differences in languages, religion, weather, and food, there are difference in the role and the goal of your work. Unlike domestic work, most of the times, companies send international professionals for a specific goal, such as implementing new policies, fixing a problem, and doing business turnarounds. And most of the times international work assigned with a limited time.
Introduction The concept of having a two-tier wages program is an issue that continues to elicit mixed reactions. The rationale used in the adoption of a two tier wages plan is that organizations will be maintaining a high number of talented employees within the organization. However, the outcome of the two tier wages plan is not as one would expect. On the contrary, the inherent wage disparity for groups in the same job category causes differences in the level of motivation. The argument here is that the two tier wages plan provide an enormous amount of problems than it solves.