Académique Documents
Professionnel Documents
Culture Documents
Compensation
Expatriate Compensation
EXPATRIATE COMPENSATION
Expats get --- Base salary (Home country)
TRADITIONAL APPROACHES
Balance sheet method
Higher-of-home or host approach
Localization Approach
BASIC IDEA
Each expatriate should enjoy the same
standards of living he/she would have had at home.
-- upward adjustments
LOCALIZATION APPROACH
Employee is assigned to a Host
country on PERMANENT bases.
LOCALIZATION APPROACH(cont)
By using this approach, their might be
a SALARAY decrease for the
employeeReasons:
Salary structure of host country
&
Cost of living
LEVEL OF STANDARDIZATION
Proposed by HEENAN & PERLMUTTER
Ethnocentric Polycentric
Regiocentric
Geocentric
ETHNOCENTRIC
Practices & policies of HOME country are exported to foreign locations. Focus of organization Create an image (Competitive strategy)
ETHNOCENTRIC(cont)
In context of expatriate--
Helps make the assignments MORE ATTRACTIVE to the organizations DOMESTIC employees.
POLYCENTRIC
Each location has ITS OWN practices & policies align with LOCAL CULTURE & WORKFORCE characteristics.
POLYCENTRIC(cont)
Costly approach BUT Reduce turnover in acquisition BECAUSE All practices are according to: Existing market needs & Customer tastes
REGIOCENTRIC
All practices & policies are STANDARDIZED by geographic region. Variations depends upon regions & local market
REGIOCENTRIC(cont)
This approach involves: Establishing autonomously/separately
GEOCENTRIC
Developing one set of global practices & policies that are applied to all locations. Difficult to implement BECAUSE Global & Cultural difference Factors
By home country HQ
By local subsidiary management Little among subsidiaries, little between subsidiary & HQ Host country managers
Little between Totally subsidiary & connected HQ, medium to network of high among subsidiaries & subsidiaries in subsidiaries and region HQ Managers may come from nations within region Best people where they can be best used
Staffing
REPATRIATION
The returning of an employee to the
country of origin or home country.
BECAUSE
Large number of employment laws vary from country to country that protects workers.
UNITED STATES
Employers have unilateral right to
make decisions, that effect
employees
EUROPEAN UNION
Employers are required to
communicate & negotiate many
& consultation.
EUROPEAN UNION(cont)
Works council, compose of employee-elected worker representatives, are required to meet monthly with senior management to discuss all employment policy issues.