SLP 3 HRM - 403 Don't let them just eat cake, designing a Essay

SLP 3 HRM - 403 Don't let them just eat cake, designing a compensation package for expatriates - Essay Example The compensation program developed provides incentive that gives expatriates to work outside the country and must pay well to help them offset their bills and maintain high living conditions in those countries, besides incidences of insecurity risks. Offering international compensation is regarded as internal rate of return as they are highly valued by employee’s performing international duties. It influences the organization’s culture, motivation and performance, and recruitment and selection of competent employees. (Dowling, & Welch, 1999) This is delineated as the amount of money received by an expatriate in the home country. It is affected by the exchange rates. The salaries in the designed package will be paid in home currency. The base pay is also the benchmark through, which helps in the calculation of benefits and bonuses. This is also referred to indirect compensation. It constitutes a portion of international compensation, usually a third of base salary. Benefits include entertainment, gifts, festival celebrations, telephone, and vehicles among others. An employee is likely to stay with an employer that is sensitive to its direct benefits. (Harzing, 2006) This is regarded by this scheme as an important feature of expatriate compensation. Cost of living is the most common allowance provided to expatriates, which help expatriates adjust so that they can enjoy same standards of living as in their home country. Some of these benefits include; reallocation allowance, housing, spouse, and home leave allowance. This refers to an additional payment that is accrued to employees I order to increase the output. Incentives can be either in monetary and non-monetary terms. Incentives will give expatriates reason to remain in the organization. This refers to an inducement, mostly in form of salary so as to accept overseas assignments. Expatriates working in countries, which are hostile to