Verified Document

Expatriate Compensation Package Compensation Is A Crucial Essay

Expatriate Compensation Package Compensation is a crucial link between strategy and its successful implementation. There is a fit between compensation and the goals for which the firm wants managers to aim. In this way employees may not feel exploited (Deresky, 2011). The employees need to perceive equity and good will in their compensation and benefits whether they are parent country nationals or host country nationals. Expatriates have to be competitively remunerated.

Compensation of expatriates whether from parent or host country calls for reconciliation of the parent and host country financial, legal, and customary practices (Deresky, 2011). To ensure that expatriates do not lose out on through their overseas assignment the balance sheet approach has to be used to equalize the standard of living between the host country and the home country and to add some compensation for inconvenience or qualitative loss. The multinational corporations have to make...

Under circumstances when tax differential is considered complex and expensive for the company, a policy of tax equalization can be used (Deresky, 2011). This is when a company pays any taxes due on any type of additional compensation that the expatriate receives for the assignment. S/he pays in taxes what s/he would have paid back home. Efficient tax planning can nevertheless be used to lessen the burden of foreign taxes. Regarding parent company compensation all components of the compensation package have to be considered in light of home and host country legalities and practices (Deresky, 2011). Some of the components that have to be factored here include: salary, taxes, allowances, and benefits. Regarding salary, issues pertaining to local salary buying power and currency translation as compared with home salary have to be critically looked…

Sources used in this document:
References List

Crandall, L.P. & M.I. Phelps (1991). Pay For A Global WorkForce. Personnel Journal, 70(2),

28, 30 -- 33.

Deresky, H. (2011). International management: Managing across borders and cultures (7th ed.).

Upper Saddle River, NJ: Prentice Hall.
Cite this Document:
Copy Bibliography Citation

Related Documents

Business Environment and Employees
Words: 4702 Length: 15 Document Type: Research Paper

Human resource management is one of the essential components to the competitiveness of global firms. Corporations that perform exceptionally regarding human resource management tend to integrate strong discipline in their people with attention to strong social capital (developing networks and relationships within the organization). The multiplier impacts of this combination generate inimitable conditions for people management, which in turn drives employee engagement in the global context. The following study focuses

Historic Process by Which Strategic
Words: 5396 Length: 20 Document Type: Essay

Concerning employment practices in general, the order not only strictly prohibited discrimination in hiring, but it also entered into the lexicon the now commonplace idea of Equal Opportunity Employment and established the premise of Affirmative Action. In doing so, this order would also explicit the prohibition of discriminatory treatment of employees once hired, seeming to build a legal case for those who would argue that a compensation system demonstrates

Market Driven Management
Words: 25695 Length: 75 Document Type: Term Paper

Pharmaceutical industries have to operate in an environment that is highly competitive and subject to a wide variety of internal and external constraints. In recent times, there has been an increasing trend to reduce the cost of operation while competing with other companies that manufacture products that treat similar afflictions and ailments. The complexities in drug research and development and regulations have created an industry that is subject to intense

Organization Behavior Strategic Management of Human Resources
Words: 5609 Length: 15 Document Type: Essay

Organization Behavior Strategic Management of Human Resources This paper acquaints the reader with the Human Resource Management at the largest fast food brand in the World -- McDonald's. It describes the core HRM practices which are currently in use at the company and discusses them in the light of modern International HR Management practices. The paper also contains recommendations on how McDonald's can improve its HR practices. MCDONALDS: INTRODUCTION McDonald's is the World's largest

Wal-Mart: Human Resource Practices
Words: 1211 Length: 3 Document Type: Essay

S., and its culture, therefore, borrows heavily from the American culture, which is well-known for uncertainty avoidance (Reiche & Harzing, 2009). Expatriate's Language and Culture Preparedness: the success of any international assignment depends upon the employees' ability to interact and work together efficiently towards a common goal. The Chinese, for instance, interact and would be more willing to work with one of their own because of the cultural belief that they

Human Resources Management Practices in the Global
Words: 3848 Length: 15 Document Type: Essay

Human Resources Management Practices in the Global Environment & Human Resources Information Systems (HRIS) The objective of this study is the examine Human Resources Information Systems (HRIS) as it relates to Human Resources Management practices in the Global Environment. Toward this end, this work in writing will examine the literature in this area of study. Globalization, in the work of Husain (2010), is reported as symbolizing "the structural making of the world

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now