Compensation

Compensation
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Forces driving Global Pay (Gross & Wingerup)

Cultural Preferences

• Importance of status
• Role of individual vs. organization vs. government
• Equity vs. disparity
• Achievement vs. Relationships

Economic Conditions

• Size of economy
• Types of industries, natural resources, inflation, unemployment
• Protectionism vs. open market

Personal Preferences

• Attitudes toward risk
• Quality of life vs. work
• Short- vs. Long-term
• Competitiveness vs. solidarity

Social Constraints

• Income tax rates, social costs
• Laws and regulations
• Collective bargaining, worker participation
• Skills, education of workforce

COMPENSATION EXPECTATIONS

• Incentive to leave
• US standard of living
• Security
• Healthcare
• Foreign taxes
• Education of children
• Trips home other ways to connect with friends and family
• Reentry

Balanced- Sheet approach
1. Base pay (Gross income + bonus – (taxes + SS + pension)
2. COLA (usually only additions; includes housing allowance)
3. Incentive premiums (mobility + hardship + hazardous conditions)
4. Assistance programs (moving + storage + auto + education)