Definition

Compensation is the total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required.

Forms of Compensation ‡ Monetary form of compensation: ± ± ± ± ± Bonuses Profit sharing Overtime pay Recognition rewards Sales commission ‡ Non monetary form of compensation: ± Perks ± Stock options ± Company paid housing etc. .

‡ Who is an expatriate? ± An expatriate.Why International Compensation? ‡ Globalization has increased awareness of and concern for creating internationally equitable compensation systems in many companies. sometimes referred to as an expat. . is a citizen of the country in which the organization's headquarters is domiciled.

while efficiently accommodating different types of employment terms and conditions. poses many distinctive challenges for global HR practitioners .Developing suitable compensation policies to meet organizational strategies.

Factors influencing International Compensation ‡ ‡ ‡ ‡ ‡ ‡ ‡ Culture Economic factors Taxation Competitive labor market Laws and regulations Standardization Vs localization Collective bargaining .

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