The value of reward equity in international assignment compensation
There are three main approaches to international assignment reward: home-based, host-based, and globally mobile compensation methods. Motivating assignees depends upon an equitable approach. But can this be achieved given the trend towards greater flexibility in package design and the emphasis on improving the employee experience? Dr Sue Shortland discusses this conundrum.
This article is taken from the Leadership Supplement from
Relocate Think Global People
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This article begins with a story. When teaching university students about international reward approaches, I always begin by getting them to tell me what they believe is fair. Typically the class comprises international students from multiple countries – some come from countries with high rates of pay (Norway, Switzerland), others from countries with relatively low wages (Morocco, Ethiopia). For the purpose of the exercise all of these students are going to be relocated to the USA, to a relatively high wage and cost of living city, such as San Francisco, and they will all be working together on the same project carrying out similar roles in a team also comprising local people.
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