Expatriate Compensation – Key Points

Main points on expatriate




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Similarity and Differences in Employee Compensation

The employee should and have to be compensated in respect to their working regions and nationalities. Countries in western Africa will need different compensation from those in working in the USA. Employees within a given region, let us say, Asia, will have similarity in in needs and thus need a similar compensation as they are affected by the same (Elmaghraby, & Keskinocak, 2008). The currency of a country or region will also dictate compensation as individuals in a country like Rwanda in Africa have poor currency compared to those in Canada and thus if an organization used a certain currency like US dollar it might benefit someone in Rwanda and affect the one in the USA or vice verse. Similarity and differences are usually influenced by culture and currency among other factors.

Emerging Issues for Employee Compensation

It happened that currently, most countries were offering compensation to managers forgetting sub-ordinates who are the soul of every organization. It is also a trend that compensation was made in relation to the company or firm size and this was wrong, compensation should be based on personal output. Compensation is also believed to be attached to physical environment or working area (Elmaghraby, & Keskinocak, 2008).

Gaps between current Practices and Employee Preference for Future Compensation

It is generally agreed that the gap between current and desired motivation was low. US countries, Taiwan and Mexico portray a greater mean between currently and desired motivation. Other countries were relatively low in Australia having a lower mean of about two.


Elmaghraby, W., & Keskinocak, P. (2008). Dynamic pricing in the presence of inventory considerations: Research overview, current practices, and future directions. Management science, 49(10), 1287-1309.

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