The role of pay and benefit on compensation

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In a recent survey, it has been affirmed that 18% of managers are in a position to administer international compensation, though it is perceived as time-consuming and workers view the strategy as the most tangible aspect of human resource management internationally (Milkovich, Newman, & Milkovich, 2012). Successful motivation and benefits call for basic knowhow of the economic structure of the region, that is, taxation, currency fluctuation and inflation within the region. Making the work-force globalized might not be the advantageous mode of compensation as workforce can affect compensation in a negative manner. Managers should thus, employ approaches considering employees behavior and needs in relation to the culture and economy of the respective country for international compensation to be effective as a matter of importance.

Employees have differences and if they tend to portray any sorts of similarity it would depend on the region or the location in which they are located. For instance, research shows that employees located in Asia shared the same similarities and also similar differences as dictated by the culture of the people. We would thus clear out that culture will greatly influence the outcome or similarity of wants as portrayed by (Tremblay, Sire & Balkin, 2010). Employee’s motivation according to the research carried out portrayed that different companies had different methods of carrying out compensation such as a measure of employee performance; this was based on group, organization and even nature of the company. This was a poor method of measuring output and employees could feel disowned and anticipate for much. Another challenge was that, in the process of benefits offering and compensation of employees, compensators had only paid concern on nationally located expatriates who are located in the headquarters and are not concerned about the local expatriates. In this case, compensation has to be made in respect to performance. Expatriate located in remote areas need much compensation as compared to those located in well to be areas. To make compensation, one needs to look beyond expatriate as some will fail to deliver to culture and state of the region they are located in. to wide this in another view, compensation should be made based on different factors, not just expatriate alone.

In the case of emerging trends in international motivation, it has been that most nations try to offer compensation concerned with current affairs but this is not the case. Cultures and working environment appeared to be the dictating factor as far as compensation is concerned. In a case study, it appeared that most Asian employees shared common employee behavior. (Metcalfe, & Monaghan, 2011), postulated that compensation was supposed to be based on the size of the firm. This could discourage employees and even make it worse a to motivate works as most works will try to move to the companies giving better pay to employees. As we know that compensation based on the employee is dangerous and might even make production low, then regardless of firm size, employees should be compensated as they deliver services since this is the base of company’s growth. For instance, an employee working in Canada and USA had a good pay and thus laid a good level for other countries to anticipate. This is because these regions has developed an employee culture and are able to motivate them in their respective cultures ( Milkovich, Newman, & Milkovich, 2012). As a matter of trend, it is happening that most managers are the only souls motivated unlike the subordinates who work hard for firms to achieve goals, sad, firms should ensure that compensation is made to the correct person in a respective manner.

In conclusion, beneficial compensation should be productive and based not just on want but need and problems of employees to avoid differences. Compensation should be based on culture, regional currency and employees output.


Milkovich, G. T., Newman, J. M., & Milkovich, C. (2012). Compensation (Vol. 8). New York: McGraw-Hill.

Tremblay, M., Sire, B., & Balkin, D. B. (2010). The role of organizational justice in pay and employee benefit satisfaction, and its effects on work attitudes. Group & Organization Management25(3), 269-290.

Metcalfe, N. B., & Monaghan, P. (2011). Compensation for a bad start: grow now, pay later?. Trends in ecology & evolution16(5), 254-260.

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