HR Practices in Different Global Regions

HR Practices in Different Global Regions

Introduction

It is very crucial for the manager working in multinational organizations as well as for those HR managers who are involved in transferring local staff for overseas jobs, to understand the importance international HRM. The HR manager in the current scenario must have a clear global HR vision for management of their resources both at home and overseas (Kesler, 1995).

Remuneration is an important HR function that must be aligned with regards the employee qualification and experience but in case of overseas projects, it is difficult to follow a common standardized remuneration package due to different in currencies and living expenses. Authors suggest that there is a need for a readily verified for fair calculations. The management must provide for clear terms and conditions about the difference in similar positions for different countries (Harris, 2001).

Employee Compensation

It is understood, therefore, that the total compensation consists of compensation which are the basic monthly salary; incentives are bonuses, bonuses, insurance life, meal, health insurance, etc (Boxall, 1996). Besides remuneration there are rewards considered direct and indirect financial rewards and non- financial. Direct financial rewards are constituted by the sum of salary, bonus, commission, since the indirect financial reward are the benefits offered by the company and non-financial rewards are those offered to employees as a way to keep you satisfied at work are safety, self-esteem, recognition, etc (Chew, 2004). Thinking about it, today organizations seeking to invest in strategic compensation system, i.e., seek to understand the interests of where its employees are also contemplated the company's shares, observing the degree of resourcefulness and skill of each professional. The strategic compensation can be understood as the varied application pay employees, taking into account the knowledge of the mission, the vision and institutional values (Harris, 2001).

Global Employee Compensation in Multinationals

The remuneration practices and administrative changes in more than 45 multinationals keep battling against worldwide rivalry, managing the desires of representatives and cost regulation in today's economy. These associations are kept tabs on the expenses of worldwide contracts important to pull in and hold their top ability. Since the remuneration practices differ from nation to nation, this is an especially testing errand. Obligatory wage increments, benefit offering, extra occasion pay or rewards going from 12 to 16 months, supper remittances and transportation are only a percentage of the installment programs that fluctuate from nation to nation (Chew, 2004). It is important to comprehend the distinctive compulsory and standard practices around nations to adequately oversee costs one worldwide workforce. Head honchos of multinational organizations should first advance a worldwide point of view and after that translate it in the light of existing practices and pay necessities in every nation. This guarantees a predictable and normal methodology for worldwide recompense, that is significant and material in the nearby advertises in which they work (Kesler, 1995).

Mandatory Wage Increases in Different Regions

With multinational organizations striving to manage the costs of global jobs, a factor that continues to pose a challenge ...