A Report on

INTERNATIONAL REWARD STRATEGY

Submitted by

SUMIT KUMAR GAUTAM

University roll no.- 12500921007

PAPER CODE - HR 406

Under the guidance of

Sarmistha Ghatak

Dept. Of MBA

Bengal College of Engineering and

Technology

Bidhanagar, Durgapur- 713212

ACKNOWLEDGEMENT

I would like to confer my heartiest thanks to our

teacher Sarmistha Ghatak For giving us the
opportunity to explant work in the field of
INTERNATIONAL HRM, especially its practical
applications.
While preparing our project we got to have an in
depth knowledge of practical applications of the
theoretical concepts and definitely the things
which we have learned will undoubtedly help using
future, to analyse many processes.
We would also like to thank all those people who
directly or indirectly helped us in accomplishing
this project
TABLE OF CONTENT

• ABSTRACT

• INTRODUCTION

• METHODOLOGY

• DISCUSSION

• CONCLUSION

• APPLICATION

• BIBLIOGRAPHY
ABSTRACT

The concept of reward management does not simply refer to

the payroll function. It covers the formulation and
implementation of the strategies as well as the practice of pay
system.

Reward, of which can be in terms of monetary or non-monetary,

is the key factor to attract or retain talents and to motivate
employees to become good performers. Undoubtedly, positive
recognition for people facilitates better morale and
performance among employees, which in return leads to high
productivity for the organisation. Nevertheless, it is a sensitive
and controversial issue which every organisation or employer
has to handle it with caution.

An equitable, market-based and cost-effective reward

management system should be developed in order to
acknowledge an individual or team with accomplishments. A
structured reward management system helps building a high-
performance culture for an organisation where its employees
are linked up to work together towards the business goals and
objectives. Apart from establishing a reward management
system with justice, it is also essential for the organisation or
employers to maintain clear and close communication with
employees on the reward policies.
INTRODUCTION

Strategy provides an over-arching framework for decision-

making. It refers to making choices and giving full
consideration to the consequences of judgements made. Being
outcomes-driven, as well as supporting the overall objectives of
the organisation, international reward must be considered
within a strategic context.With regard to the deployment of
international assignees and other globally mobile personnel –
such as frequent business travellers – reward strategy must
consider how individuals can be motivated to undertake what
can be a disruptive and potentially stressful life event. Simply
throwing resources at personnel to encourage them to move is
not a sensible strategic approach. A wide variety of factors
needs to be weighed up in the decision-making process,
balancing how best to engage internationally mobile staff set
within the context of meeting business objectives efficiently
and effectively, and making the organisation ever more
competitive. Bearing this in mind, organisations’ global mobility
rewards should not be excessive, but an approach will be
required that attracts, motivates and retains the talent
considered critical to add value to the business.Devising an
appropriate international reward strategy can draw upon
evidence-based practice. The CIPD defines this as “an
approach for improving decision-making in HR, which takes
account of the best available evidence and critical thinking”.
METHODOLOGY

In today’s rapidly changing and uncertain international

environment, organisations in many sectors rely on the
knowledge, skills and competencies of their key people to build
and realise value, as well as intellectual capital. 

These key workers are increasingly mobile – both relocating

and travelling for work – and performing their jobs in
increasingly digital and virtual work environments. A growing
percentage of today’s international workforce is “blended”; that
is, a combination of permanent and contingent workers, both
full-time and part-time, with a variety of needs and constraints.
Often teams on international projects are not co-located
because they are constantly mobile and often work virtually.

This increasing diversity of requirements means that in many

organisations, identifying, positioning and managing an
international reward strategy is no longer a bit part in the
repertoire of global mobility professionals. Instead, an
international reward strategy is a regular and central theme in
decisions relating to overall corporate performance and
business growth.
Making your Global Rewards strategy

New ways of working will not drive performance and results

unless traditional Reward structures evolve to meet changing
workforce expectations and desired organisation outcomes.
You can think of international remote workers which change
the local competitive environment. How will this work? The best
way forward is to reinvent a suitable reward strategy by
embracing non-traditional features, adapted to the specific
needs of the future workforce. One of the key elements is
flexibility. At the same time labour costs should be managed
and new talent models accommodated.

The Future Reward experience

Organisations will continue to embed market rewards (“table

stakes”) at the heart of any Reward strategy to provide the
fundamental, baseline required to attract and retain talent by
meeting worker expectations, market and social norms. But the
world is changing. 56% of the organization have redesigned
their compensation/ rewards strategy in the past 3 years yet
64% of the organizations plan to redesign again to align with
the changing trends of Future of Work, COVD-19 and employee
expectations.
STEP BY STEP METHOD

 Be prepared , design your Global strategy in all

transparency and fairness. A Global Rewards Lab can be
the basis.
 Include the wishes of your employees. Make an inventory
through an employee survey.
 Include all stakeholders, like the Works Council or Unions ,
from the start.
 Integrate not only a competitive salary package, market
rewards, but also motivator rewards, aligned with your
company philosophy.
 Make a clear cost and benefit comparison of the
traditional and the new approach.
 Keep the package individually flexible as well as
manageable, think about a flexible reward platform.
 Communicate, communicate and communicate, explain
the new package and the reasoning behind the changes,
clearly, to all stakeholders.
DISCUSSION

What are the benefits of an international reward

strategy?

Increases employee motivation

Rewards serve as a motivation for employees. When
employees work knowing that they can receive an incentive if
they perform well, they may become more dedicated to their
role. When an employer establishes a fixed reward system,
employees strive to perform assigned tasks efficiently, impress
their managers, and achieve rewards.
Enhances productivity
When an employer rewards an outstanding employee after a
productive year or project, it also motivates other employees to
work harder to achieve the reward or incentive. This can have a
positive influence on the productivity of the company. Efficient
employees strive to attain and even surpass the goal set.
Therefore, whether the reward is monetary or non-monetary, it
inspires employees to be more productive.

Promotes friendly competition

An employer can introduce a culture of healthy competition into
the organization through an effective reward program. They can
give incentives based on team performance, individual
performance, or both. Competition is usually a significant driver
of performance, productivity, and improvement. By cultivating a
healthy spirit of competition, employers can also promote
innovation and creativity.

Encourages teamwork
When employers give rewards to outstanding teams of
employees, they encourage all team members to collaborate
and work as a unit towards a common set of goals. Employers
expect employees to contribute, brainstorm, and work together
to achieve the team's goal. Employers want employees to work
in unity and learn from each other to achieve the team's goal
and receive the expected incentives.
Some type of reward

• Job analysis and job evaluation

 Base pay

 Pay for performance

• Benefits

 Mergers & acquisitions

 Payroll administration

• International reward management

• Reward communication

 Performance management
CONCLUSION
Very significant competitive advantages, both generally and
specifically, can be derived from the design and application of
an international reward strategy that complements the wider
corporate aims of a business.
Generally, an international reward strategy that flexibly reflects
an organisation’s overall commitment to its internationally
mobile people will undoubtedly help gain the upper hand in the
increasingly competitive search for cross-border talent.
More specifically, a substantial bottom-line competitive
advantage can often be achieved by developing international
reward structures that maximise opportunities for savings
arising from accounting, tax and legal requirements in the
jurisdictions which an organisation operates, as well as offering
mobility as a reward or incentive for younger professionals, for
whom rewards as experiences are at least as important as
financial remuneration.
APPLICATION

The current environment has accelerated the new and more

flexible way of working. More than 60% of companies are
redesigning jobs around robots and artificial intelligence. The
future workforce is diverse in backgrounds and capabilities,
hungry for opportunities and evolving new skills and
capabilities, as well as flexible and agile. However note that at
the same time, the new employee is complex to manage and
lead, demanding and expects reward to align to their
professional goals and personal preferences.

Bonus

A bonus is a financial incentive that employees receive in

addition to their set salary or wages. The additional amount can
be a specific amount or a percentage of your salary. Employers
determine how frequently to give this bonus and the eligibility
conditions for the same. As an employee, to qualify for a bonus,
you're usually required to be outstanding in carrying out your
tasks. Bonuses are standard in sales and customer service
roles.

Profit-sharing

Profit-sharing is a system in which all the people that work in a

company, team, or project share the profits according to a pre-
set formula. The most common profit-sharing formula is the
comp-to-comp method. The idea of this profit-sharing system
is to encourage employees to maximize profits since they know
they're going to get a share of the same. Profit-sharing can help
enforce the spirit of teamwork in achieving the organization's
goal

Stock options

Start-up companies usually reward employees with company

shares and ownership. Employees who exercise the company's
stock option can benefit from the company's capital generation.
Employee stock option is a contract that provides
compensation for the contributions of employees. Like profit-
sharing, the stock options approach is a way of appreciating
long-serving efficient employees for their loyalty.

Merit pay

Merit pay is a monetary reward system that employers use to

compensate employees who have high performance. At the
end of a performance assessment cycle, usually a quarter or
year, employers conduct reviews to determine employees who
meet the specific targets. They give this reward when an
employee meets or exceeds certain performance parameters.
Merit pay is different from other types of bonuses or financial
incentives, as it is usually recurring and results in a permanent
increase in the base remuneration.
BIBLIOGRAPHY

theintactone.com
https://theintactone.com/2019/02/09/shrm-u4-topic-8-
international-reward-systems/
gateleyplc.com
https://gateleyplc.com/insight/in-depth/creating-an-effective-
international-reward-strategy/
ideas
https://ideas.repec.org/p/sek/iacpro/3305200.html
deloitte.com
https://www2.deloitte.com/nl/nl/pages/finance/articles/desig
n-your-future-proof-global-rewards-strategy-now.html
career advice
https://ca.indeed.com/career-advice/career-
development/reward-systems