We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byAbril Broadway
Modified about 1 year ago
Prentice Hall, Inc. © A Human Resource Management Approach STRATEGIC COMPENSATION Prepared by David Oakes Chapter 12 International Compensation
Prentice Hall, Inc. © Compensation Challenges Further corporate interests abroad Encourage employee expatriation Minimize workers’ financial risks Enhance overseas experiences Repatriation issues Promoting lowest - cost strategies Promoting differentiation strategies
Prentice Hall, Inc. © International Employees Host country nationals (HCNs) Citizens work for U.S. company in own country Third country nationals (TCNs) Citizens of one country work for a U.S. company in another country Expatriates U.S. citizens work for a U.S. company in another country
Prentice Hall, Inc. © Compensation Factors Length of overseas assignments Short-term Extended-term Staff mobility One or more foreign assignments Equity: pay referent groups Domestic workers Host country workers
Prentice Hall, Inc. © Compensation Components Core compensation Base pay Incentive compensation Fringe compensation Standard benefits Enhanced benefits
Prentice Hall, Inc. © Setting Base Pay Home country-based Similar to domestic employees Host country-based Similar to employees in foreign sites Headquarters-based Not based on home or host country’s pay levels
Prentice Hall, Inc. © Purchasing Power Stability of currency U.S. dollar & foreign money Exchange rate fluctuations Inflation Increase in prices of goods & services Increase in inflation lowers purchasing power
Prentice Hall, Inc. © Incentive Compensation Foreign service premiums To Encourage Expatriate Assignments Hardship allowances For tough work & living conditions Mobility premiums For willingness to relocate to an assignment
Prentice Hall, Inc. © Hardship Allowances Set by U.S. State Dept based on: Foreign living conditions Physical challenges like climate Poor health conditions Over 150 countries designated Supplements between 10% - 25% of base pay
Prentice Hall, Inc. © International Fringe Compensation 2 Types Standard Enhanced Considerations Total remuneration Benefit adequacy Tax effectiveness Recognizing local customs & practices
Prentice Hall, Inc. © ENHANCED BENEFITS Relocation assistance Education reimbursement Home leave & travel reimbursement Rest & relaxation leave and allowance
Prentice Hall, Inc. © Relocation Assistance Temporary quarters before moving Transportation expenses Reasonable traveling expenses Temporary quarters upon arrival Moving & storing household goods
Prentice Hall, Inc. © Balance Sheet Approach To determine compensation packages To provide similar standard of living Strategic value Protects expatriates’ standard of living Allows companies to control costs
Prentice Hall, Inc. © Appropriateness Home country is referent point Expatriates keep close ties to USA Assignment is of limited duration Repatriation after assignment Guarantee of no financial hardship
Prentice Hall, Inc. © Major Expenditures Housing & utilities Goods & services Discretionary income Taxes Information Sources Returning expatriates Consulting & research companies U.S. State Dept. indexes
Prentice Hall, Inc. © Discretionary Income Expenditures Pension contributions Savings & investments Insurance payments Mortgage equity payments Alimony Child support Student loans Car payments
Prentice Hall, Inc. © Tax Considerations Double taxation relief IRC Section 901 IRC Section 911 Tax protection Tax equalization
Prentice Hall, Inc. © IRC Section 901 Can credit foreign taxes from U.S. tax If U.S. tax is greater Expatriates pay difference to IRS If foreign tax is greater Expatriates can deduct excess to future U.S. taxes For up to 5 years
Prentice Hall, Inc. © IRC Section 911 Can Exclude up to $70,000 of Income Exclusions Cash Income Professional fees Incentives Bonuses Sales commissions Non - Cash Housing Meals Vehicles Education Home leave Tax reimbursements Moving expenses Cost of living
Prentice Hall, Inc. © Tax Protection Employers reimburse expatriates when actual tax is greater Expatriates pay entire tax when actual tax is less or equal
Prentice Hall, Inc. © Tax Equalization Employers deduct hypothetical tax Employers pay real tax from hypothetical Reimbursements settled after payment Equitable treatment any assignment
Prentice Hall, Inc. © Repatriation Concerns Losing supplements & allowances Work experience not valued Reintegration into domestic workforce Leaving company
© Prentice-Hall, Inc., 2001 Chapter Twelve International Compensation.
STRATEGIC COMPENSATION A Human Resource Management Approach Chapter 14: Compensating Expatriates Copyright © 2015 Pearson Education, Inc.14-1.
Chapter Twelve International Compensation. Types of Int’l Assignments l Host country nationals l Third country nationals l Expatriates l Current trend.
Company LOGO INTERNATIONAL COMPENSATION POLICIES Managing an Supporting International Assignments – Chapter 6.
Human Resource Management McGraw-Hill/Irwin International Business, 11/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. chapter.
International Human Resource Management Managing people in a multinational context.
International Compensation Nancy Johnson April 2005.
Welcome to class of International Human Resource Management by Dr. Satyendra Singh University of Winnipeg Canada.
Prentice Hall, Inc. © A Human Resource Management Approach STRATEGIC COMPENSATION Prepared by David Oakes Chapter 13 Compensating Executives.
Group Exercise You are an American Executive in the computer industry. You currently manage a manufacturing division for the company in Santa Clara, California,
1 Chapter Seven International Compensation. 2 Chapter Learning Objectives After reading this chapter, you should be able to: explain the complexities.
Global Total Compensation Compensation Management Prepared by: Mr. Zaheed Husein Mohammad Al-Din, Sr. Lecturer, BBS Adapted from: Compensation, Ninth Edition.
Prentice Hall, Inc. © A Human Resource Management Approach STRATEGIC COMPENSATION Prepared by David Oakes Chapter 11 Discretionary Benefits.
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 20-1 International Business Environments & Operations 14e Daniels ● Radebaugh ● Sullivan.
Chapter Nineteen Human Resource Management McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
CPP / FPC Study Group WELCOME ! Please sign in Review of Answers Presentation Material Review Test of Section 2.
© 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.
Chapter 4 Managing Income Taxes. Copyright © Houghton Mifflin Company. All rights reserved.4 | 2 Explain the nature of progressive income taxes and the.
©UFS Financial Planning 101 Investment Advisory Services offered through Investment Advisor Representatives of MetLife Securities, Inc. (MSI), 200 Park.
INCENTIVES & FRINGE BENEFITS. Variable Pay Or Pay For Performance Systems Here the pay is linked to individual, group or organisational performance. Employees.
Mike Johnston Senior Manager, Tax Sandra Peters Manager tax KPMG LLP
Bus 225D – International Tax Individuals and Foreign Corps Instructor: Carol Rutlen, CPA
Chapter 4: Managing Income Taxes Garman/Forgue Personal Finance Ninth Edition PPT slide program prepared by Amy Forgue and Ray Forgue.
Chapter 16 Global Human Resource Management 1. Video Job Threat 2.
Bus 225D – International Transactions II Instructor: Carol Rutlen, CPA
© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.
© 2007 Robert Sweo International Human Resources.
PERSONAL INCOME EQUATION (P.I.E). Gross Pay – Deductions = Net Pay – Expenses = Discretionary Income.
By Javier Martinez, Director of Payroll Management Services October 2008.
© McGraw Hill Companies, Inc., 2000 Global Human Resource Management Chapter 18.
The World Bank Group Net Plan Changes Effective May 1, 2007 Pension Administration Tel: (202)
Life Insurance In Qualified Plans Chapter 32 Tools & Techniques of Life Insurance Planning What is it? Life insurance is purchased and owned.
Compensating Executives Chapter # 13. What is executive status? IRS recognizes two groups – Highly compensated Very responsible position 5% owner sometime.
Lesson 16 Investing for Retirement. Key Terms 401(k) Plan Annuity Defined-Benefit Plan Defined- Contribution Plan Employer- Sponsored Retirement.
THE CORPORATION TAX Chapter 19. I’ll probably kick myself for having said this, but when are we going to have the courage to point out that in our tax.
Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved Human Resource Management Human Resource Management includes Estimation of work force.
McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved International Pay Systems Chapter 16.
Copyright ©2004 Pearson Education, Inc. All rights reserved. Chapter 4 Using Tax Concepts for Planning.
Review Basic Accounting. Fundamentals Assets are anything the business owns that has a dollar value (debit balance on the “T-accounts”) Liabilities are.
MERCER 2012 WORLDWIDE INTERNATIONAL ASSIGNMENT POLICIES & PRACTICES SURVEY KEY RESULTS: CANADIAN MULTINATIONALS FEBRUARY Roger Herod Mercer Chicago.
International Vacancies Location Area of Consideration Position(s) Basic Requirement(s) Selection Length of Assignment Training and Development.
Human Resource Management Lecture 19 MGT 350. Last Lecture Costs of Providing Employee Benefits Legally Required Benefits Social Security Unemployment.
BANKING IN CANADA Canadian Economy TYPES OF FINANCIAL INSTITUTIONS Deposit taking and Lending Institutions Insurance companies/Pension Funds.
Chapter 3 Income and Taxes INCOME Section 3.1 Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. Identify different.
Why Trade in the United Kingdom? A practical, commercial and financial overview.
Chapter 21 Rewarding Performance Cost Accounting Traditions and Innovations Barfield, Raiborn, Kinney.
Copyright © 2008 Pearson Education Canada Managing Human Resources in a Global Business Dessler & Cole Human Resources Management in Canada Canadian Tenth.
Prentice Hall, Inc. © A Human Resource Management Approach STRATEGIC COMPENSATION Prepared by David Oakes Chapter 14 Compensating the Flexible.
© 2017 SlidePlayer.com Inc. All rights reserved.