Global Compensation: Balancing Between Workforce and Organizational Requirements

Global Compensation: Balancing Between Workforce and Organizational Requirements In this era of globalization, when companies have a multicultural and multilingual working environment, and a large mobile workforce, an organization’s performance is dependent largely on the compensation factor to its employees. Compensation relates to a meeting point of the employees priorities and organizational goals and plays a major role in acquiring and retaining the human resource.

The human resource professionals of the multinational organizations need to develop global compensation policies, which would meet organizational strategies as well as accommodate the interests of the employees worldwide. A number of factors need to be considered while designing global compensation benefits. While dealing with diverse cultures, the HR personnel are dealing with diverse cost of living standards, currencies, inflation, and tax systems. An attempt to provide the best to the employees need a proper understanding of the local compensation practices, compliances prevalent in a region, employee values and expectations based on cultural diversities as well as organizational business requirements based on mergers, acquisitions or joint ventures.

Compensation includes formal and informal system of rewards that acts as the driving force for effective motivation and management of human talent. The global compensation benefit program is not a ‘one size fits all’ because of the cultural, legal and social differences. To provide organizations with effective human resource solution requires industry experience and an ability to strike a balance between a centralized and decentralized compensation. Besides organizations, also need to consider adherence to HIPPA security compliance and ERISA compliance as a part of employee benefit services.

Industry leaders with expertise in delivering global human resource solutions can seamlessly integrate employee compensation programs, compliances, payroll and retirement plans. Globalization and customer demands call for business penetration to new markets. Under such circumstances, enterprises with expertise in global compensation can help in handling of human resource through effective strategy and planning. Through a structured approach these leaders gains a comprehensive study of a client's business, analysis, identifies challenging issues, and develops a lasting solution customized for the organization.

Know more on: Global human resource management