BUS FPX 3040 Assessment 4 Compensation and Benefits
Compensation and Benefits
As the new head of human resources at Java Corp, a cold coffee and tea firm based in the United States, I have been entrusted with developing a benefits package for an executive-level post that will be filled by a citizen of the United States at the company’s forthcoming London, England office. A well-structured and presented salary and benefits plan that satisfies legal standards and the demands of a multinational workforce will be crucial to the success of this worldwide project.
In this report, I will analyze the key factors and decisions to be made regarding base pay and pay considerations specific to expatriate positions. I will also examine legally required benefits and standard benefit offerings for employees, and discuss factors that might influence these offerings. Lastly, I’ll evaluate whether or not it makes sense to provide supplemental benefits and resources to workers who will be relocating to another country for a work assignment. Java Corp may successfully expand internationally if it considers these things and offers competitive salaries and perks to its employees.
Key Factors and Decisions for Base Pay
Key factors and decisions to consider when determining base pay for an executive-level expatriate position in London, England include:
- Employee qualifications, experience, and job responsibilities (Leitão et al., 2019).
- Market trends and industry standards for compensation (Leitão et al., 2019).
- The cost of living in London and the availability of local talent (Leitão et al., 2019).
- The company’s compensation philosophy and overall business strategy (Leitão et al., 2019).
To ensure that the base pay is competitive and aligned with industry standards, it is important to conduct a comprehensive salary survey. Expatriate premiums and allowances, as well as any legally mandated benefits that may differ between England and the United States, must be taken into account. Additionally, the company’s compensation philosophy and business strategy should be taken into account when determining the appropriate base pay for the executive-level expatriate position (Leitão et al., 2019).
BUS FPX 3040 Assessment 4 Compensation and Benefits
Analyze Pay Considerations Specific to Expatriate Positions
Expatriate positions often require additional pay considerations beyond the base pay to attract and retain top talent (McWha-Hermann et al., 2022). Some of these include:
- Foreign service premium: This is an additional payment made to employees who accept assignments in foreign countries to compensate for the hardships and additional expenses of living in a foreign country (McWha-Hermann et al., 2022).
- Incentive pay: This is a performance-based payment that rewards employees for achieving specific goals or targets. It can be an effective way to motivate expatriate employees to achieve business objectives.
- Hardship allowance: This is a payment made to employees who are assigned to difficult or challenging locations that may pose risks or challenges (McWha-Hermann et al., 2022).
- Mobility Premium: This is a payment made to employees who are required to relocate to a different country to compensate for the additional costs of relocating.
Value in Competitive Global Business Environment
In a competitive global business environment, these additional pay considerations can provide a strategic advantage in attracting and retaining top talent (McWha-Hermann et al., 2022). By offering competitive and attractive compensation packages that include additional pay considerations, a company can position itself as an employer of choice for expatriate employees. This can help the company to build a diverse and global workforce that is better equipped to navigate the challenges and opportunities of a global business environment (Caligiuri et al., 2020). Moreover, offering additional pay considerations for expatriate employees can help to reduce turnover rates, enhance employee morale and motivation, and ultimately drive business success.
Legally Required Benefits
Legally required benefits are benefits that employers are required by law to provide to their employees. For US, these benefits include:
- Social Security: Those who qualify can receive retirement, handicap, and survivor benefits from this government insurance program (Bajtelsmit, 2022). A portion of every worker’s and employer’s paycheck goes toward funding the Social Security system.
- Medicare: Those over the age of 65 and anyone with certain impairments is eligible for this government health insurance program (Bajtelsmit, 2022). The Medicare system has obligatory contributions from both employers and workers.
- Federal and state unemployment insurance: Those who qualify and have lost their jobs through no personal fault may get short-term financial help.
- Workers’ compensation: If an employee has an injury or illness on the job, they are eligible to receive financial and medical compensation (Bajtelsmit, 2022).
Many employers offer standard benefits, such as health insurance, programs, retirement plans, and tuition reimbursement, in addition to the minimum benefits needed by law (Bajtelsmit, 2022). These benefits are designed to attract and retain top talent, promote employee well-being and work-life balance, and enhance employee morale and motivation.
Importance
It is hard to deny the significance of legally mandated and typical benefits packages. Legally required benefits help to ensure that employees have access to basic financial and medical support in case of unexpected events such as job loss or injury (Assi et al., 2019). This can help to reduce financial stress and enhance employee well-being. Standard benefit offerings, on the other hand, help to create a positive work environment for employees. By providing competitive and comprehensive benefits packages, companies can attract and retain top talent, reduce turnover rates, and ultimately drive business success (Assi et al., 2019).
Appropriateness of Additional Offerings
BUS FPX 3040 Assessment 4 Compensation and Benefits
It’s mutually advantageous for the company and the individual to provide extra support and resources to employees on international work assignments. These perks may include financial aid for moving, paid time off to care for a sick relative, financial help for a spouse to obtain a job, and cultural or language classes (Kosny et al., 2019). These benefits can help to ease the transition to a new country and culture, reduce culture shock, and enhance the overall experience of the employee. Additionally, offering these benefits can help to attract and retain top talent for the organization.
Expatriate employees often face unique challenges and stresses that can impact their well-being and job performance (Chen, 2019). Providing additional benefits and resources can help to alleviate some of these challenges and create a positive work environment where employees feel supported and valued (Kosny et al., 2019). For example, expatriate staff can better communicate with local colleagues and clients if they receive cultural or language training. Relocation assistance can help to ease the financial burden of moving abroad and allow employees to maintain ties with their home country and culture (Chen, 2019).
It is strongly suggested to provide expatriate workers with access to a wider range of perks and resources. By providing support and resources to employees during their overseas work assignments, companies can enhance employee well-being, promote job satisfaction and performance, and ultimately drive business success (Chen, 2019).
Conclusion
Base salary, legally necessary perks, and customary benefit offers must be considered when crafting an all-encompassing compensation and benefits package for an expatriate post. Offering additional benefits and resources can greatly enhance an employee’s experience and promote job satisfaction and performance. Companies must take a strategic approach to compensation and benefits to attract and retain top talent for their international operations. As an HR professional, it’s essential to leverage all available compensation options to create a package that meets the needs of both employer and employee, promoting an effective relationship between both parties.
References
BUS FPX 3040 Assessment 4 Compensation and Benefits
Assi, R., Özger-İlhan, S., & İlhan, M. N. (2019). Health needs and access to health care: The case of Syrian refugees in Turkey. Public Health, 172, 146–152.
https://doi.org/10.1016/j.puhe.2019.05.004
Bajtelsmit, V. (2022). Retirement income security in the United States: An overview of the public and private retirement system. Contributions to Management Science, 33(2), 29–48.
https://doi.org/10.1007/978-981-19-6446-6_2
Caligiuri, P., Cieri, H., Minbaeva, D., Verbeke, A., & Zimmermann, A. (2020). International HRM insights for navigating the COVID-19 pandemic: Implications for future research and practice. Journal of International Business Studies, 51(5), 697–713.
https://doi.org/10.1057/s41267-020-00335-9
Chen, M. (2019). The Impact of expatriates’ cross-cultural adjustment on work stress and job involvement in the high-tech industry. Frontiers in Psychology, 10(7). Frontiers in.
https://doi.org/10.3389/fpsyg.2019.02228
Kosny, A., Yanar, B., Begum, M., Al-khooly, D., Premji, S., Lay, M. A., & Smith, P. M. (2019). Safe employment integration of recent immigrants and refugees. Journal of International Migration and Integration, 1(6).
https://doi.org/10.1007/s12134-019-00685-w
Leitão, J., Pereira, D., & Gonçalves, Â. (2019). Quality of work life and organizational performance: Workers’ Feelings of contributing, or not, to the organization’s productivity. International Journal of Environmental Research and Public Health, 16(20), 3803.
https://doi.org/10.3390/ijerph16203803
McWha-Hermann, I., Jandric, J., Cook-Lundgren, E., & Carr, S. C. (2022). Toward fairer global reward: Lessons from international non-governmental organizations. International Business Review, 31(1), 101897.
https://doi.org/10.1016/j.ibusrev.2021.101897
