INTERNATIONAL COMPENSATION

MANAGEMENT

SRIVIDHYA.K.M
DEPT.OF ACCOUNTING AND FINANCE
MEANING :

The term “ compensation programme or wage and

salary administration denotes the process of managing a
company’s compensation programme. The goals of
compensation administration are to design a cost –
effective pay structure that will attract, motivate and retain
competent employees.
OBJECTIVES:

•To establish a fair and equitable remuneration offerings

similar pay for similar work.
•To know the factors influencing compensation programmes.
•To know the Expatriates compensation approach.
•To know the cultural impact on compensation policy
FACTORS INFLUENCING
COMPENSATION PROGRAMMES:
•A Key Role In Achieving Performance And Sustainable
Competitive Advantage For International Firms.

•These Policy Decision Should Be Consistent With The Over All

Strategy, Structure And Business Needs Of The Multination.

•The Policy Should Attract And Retain The Best Staff In Those
Areas Where The Firm Needs Them Most And Affords
Opportunities And Where Is Core Competency Lies.

•It Should Also Facilitate International Posting And Transfer Of

Employees.
CONSTITUTION OF
TOTALCOMPENSATION PACKAGE :

The main elements are:

•Basic Pay
•Incentives
•Retention and Referral Bonuses.
•Taxes
•Long- Term Benefits
•Paying Expatriates
APPROACHES TO EXPATRIATES
COMPENSATION:

There two approaches – “The going rate

Approaches” and Balance Sheet Approaches”
CONCLUSION :
In this paper we elaborately discuses about the compensation
pay system and its impact towards expatriates compensation methods
and the approaches which is usually followed in national and
international level and the culture impact towards the compensation
structure. And so on. Though there are variety of pay structure and
tax consideration is followed in international and national level. Since
we can able to understand some information about the international
compensation but it will vary to country to country according to
changes made by their respective government and the rules framed by
each country.