Expatriate Employees: Rewarding for Successful Overseas Branches - Essay Sample

Introduction

Rewarding employees that are getting posted to manage affiliates in foreign countries is critical to the success of such branches. The mother company has to ensure that these staffs are satisfied with the compensation given to ensure that they are working to their potential. Having dissatisfied workers can lead to business failure since they lack the motivation to undertake their activities. Expatriates might find themselves facing difficulties in life, such as high costs of living and taxes due to differences in exchange rates.

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The organization should consider introducing an expatriate reward policy for this s one of the strategies that can be used to make the staff members feel that they are treated fairly by the business. The management should understand that unjustifiable discrepancies between the local staff members in the United Kingdom and those sent to the affiliates will cause conflicts among them. The design for the policy can be approached differently, but it has to be based on one of the three main models. The home country approach ensures that the overseas workers are receiving the same package to what they would have obtained in their home country. They are given allowances to ensure that their economic position is maintained. The system is quite useful, and it can be applied when the workers are expected to work for three years in the branch company. However, it is essential to note that this is not one of the most tax-efficient strategies for offering benefits to workers, but it helps to reduce any disruption among them.

The second model that the entity may consider utilizing is the host country approach, and this covers the benefits that the employees will get in the country they are getting posted. Transitional measures are included, and they may cover the house provisions at the beginning of the working period as they search for a residence.

The international benefits package can be adopted to ensure that the employees getting sent to manage the affiliates are satisfied with the compensation they are getting. The policy has several benefits that are advanced to their staff memebrs working away from their home country. An organization should consider what motivates their workforce before they can decide the package to advance to them. For example, the high-fliers might require a good package with many allowances. The demand for the junior employees might be different, and their package is smaller. They might be motivated by the lifestyle of the host country or because moving will present them with a chance of career growth.

Exchange rates differ around the world, and employees will be looking at having the same net income they would have managed to realize in their home country or to be at par with individuals holding the same position in the United Kingdom. Therefore, the pay should be adjusted based on the rates of exchange and tax rates. Therefore, the gross income for the persons holding the same position in different country might not be the same due to the differences in exchange rates, but the net incomes should be the same. There is an international system that states the minimum wage that employees at a certain level of employment are supposed to get should be followed. Using this system will ensure that the staff members will be willing to work abroad. Therefore, if the company follow these recommendations, the workforce will have no issue shifting their base to foreign countries to work with the affiliate companies.