Expatriate: Local Remuneration Differences across Six Countries: Do they undermine poverty reduction work? Malcolm MacLach...
<ul><li>“ Australians are coming in with a higher and higher and better lifestyle, making a lot of money, what they might ...
An Inter-disciplinary Team <ul><li>Landlocked Economies </li></ul><ul><li>Alister Munthali, University of Mala ŵi </li></u...
Context and Objectives <ul><li>Millennium Development Goals (MDGs) </li></ul><ul><ul><li>–  Keeping the Promise  (2010)  <...
Methodology  – Sample Design <ul><li>Skilled workers  = Year 1: Critical Incident Technique; Year 2: Survey  N =1290; Year...
Methodology – Measures <ul><li>Self-reported pay and benefits (compared using the World Bank’s “Purchasing Power Parity”) ...
Model of Double Demotivation Source: adapted and modified from MacLachlan, M., & Carr, S.C. (2005).  The human dynamics of...
Findings (a) Pay & Benefits <ul><li>Pay disparities exist </li></ul><ul><ul><li>Overall pay ratio: 4:1 (ranged from 10:1 i...
Findings (b) Consequences for Work? <ul><li>Mean scores for justice and de-motivation (/5) </li></ul><ul><li>_____________...
Findings (b) Consequences for Work? <ul><li>Irrespective of pay group, significant predictors of de-motivation were: </li>...
(c) Organisations as ‘Capacitors’? <ul><li>Organisations  moderated  the links between: </li></ul><ul><ul><li>De-motivatio...
(c) Organisations as ‘Capacitors’?  <ul><li>Workshop presentations </li></ul><ul><li>5 x 20 stakeholder representatives </...
How  can the gap be closed?  <ul><ul><li>Localisation  </li></ul></ul><ul><ul><ul><li>Local salaries only.  Localised sele...
Selected Outputs and Impact <ul><li>Outputs </li></ul><ul><li>Carr, S.C., McWha, I., MacLachlan, M., & Furnham, A. (Eds.)....
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Expatriate; local remuneration differences across six countries,Ishbel McWha

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Expatriate; local remuneration differences across six countries,Ishbel McWha

  1. 1. Expatriate: Local Remuneration Differences across Six Countries: Do they undermine poverty reduction work? Malcolm MacLachlan Centre for Global Health Trinity College Dublin Stuart Carr & Ishbel McWha Poverty Research Group Massey University NZ Adrian Furnham Psychology Department University College London
  2. 2. <ul><li>“ Australians are coming in with a higher and higher and better lifestyle, making a lot of money, what they might get in one week is what Solomon Islanders might live on in a year. That’s sure to engender some bitterness generally” </li></ul><ul><ul><li>Local perspective: Solomon Islander Church Leader </li></ul></ul><ul><li>“ I was introduced to your work recently during a visit to the Solomon Islands when an [aid agency] employee was talking about her experiences in this location, in particular her guilt regarding the gulf that exists between herself and the local Islanders” </li></ul><ul><ul><li>Expatriate perspective: Senior Aid Agency Counsellor </li></ul></ul>
  3. 3. An Inter-disciplinary Team <ul><li>Landlocked Economies </li></ul><ul><li>Alister Munthali, University of Mala ŵi </li></ul><ul><li>Callist Tumwebaze & Leon Matagi, Makerere University, Uganda </li></ul><ul><li>Island Nations </li></ul><ul><li>John Peter Peniop, Christian Salini, Genesis Kofana, University of the South Pacific, Solomon Islands </li></ul><ul><li>Leo Marai, Vincent Kewibu, Elly Kinkin, University of Papua New Guinea </li></ul><ul><li>‘ Emerging’ Economies </li></ul><ul><li>Iris Zhou, Tian Li, Zhao u, Xiaoyan Li, Huazhong University of Science & Technology, China </li></ul><ul><li>Trilok Singh Papola, Jesim Pais, Partha Pratim Sahu, Institute for Studies in Industrial Development, India </li></ul><ul><li>Coordinating and Advisory Institutions </li></ul><ul><li>Stuart Carr & Ishbel McWha, Massey University, New Zealand </li></ul><ul><li>Malcolm MacLachlan, Trinity College Dublin, Ireland </li></ul><ul><li>Adrian Furnham, University College London </li></ul><ul><li>Tony Banks, NZAID </li></ul><ul><li>Rod McBride, AusAID </li></ul><ul><li>INTER-DISCIPLINARY ETHOS : </li></ul><ul><li>Health, Education, Management, Economics, D/Studies, Counseling, Sociology, Disaster Relief, & Work ψ </li></ul>
  4. 4. Context and Objectives <ul><li>Millennium Development Goals (MDGs) </li></ul><ul><ul><li>– Keeping the Promise (2010) </li></ul></ul><ul><li>MDG1 includes: Decent Work & liveable wages </li></ul><ul><li>Process includes Principle of Alignment (Paris, Accra) </li></ul><ul><li>An Elephant in the Room: Dual Salaries </li></ul><ul><li>Objectives in ADDUP: </li></ul><ul><ul><li>(a) document the gaps </li></ul></ul><ul><ul><li>(b) explore their consequences for work </li></ul></ul><ul><ul><li>(c) determine potential for enabling capacity (via decent pay) </li></ul></ul>
  5. 5. Methodology – Sample Design <ul><li>Skilled workers = Year 1: Critical Incident Technique; Year 2: Survey N =1290; Year 3: Workshops n =100 </li></ul><ul><li>Survey sample: Local workers = 992; expatriate = 298 </li></ul><ul><li>Organisations ( n =202) </li></ul><ul><ul><li>Aid ( n =60), Govt ( n =40), Education ( n =27), Business ( n =75) </li></ul></ul><ul><li>Countries : </li></ul><ul><ul><li>Landlocked: Malaŵi; Uganda </li></ul></ul><ul><ul><li>Island Nations: Solomon Islands; PNG </li></ul></ul><ul><ul><li>Emerging economies: India, China </li></ul></ul>
  6. 6. Methodology – Measures <ul><li>Self-reported pay and benefits (compared using the World Bank’s “Purchasing Power Parity”) </li></ul><ul><li>Variables (with checks for common method variance): </li></ul><ul><ul><li>Self-assessed ability, pay comparison, feelings of pay (in)justice, pay (de)motivation, thinking about turnover, thinking about international mobility, job satisfaction, work engagement </li></ul></ul><ul><ul><li>Covariates : cultural values, culture shock, age, gender, experience, highest qualification, social desirability (  ) </li></ul></ul><ul><li>Recommendations from in-country workshops </li></ul>
  7. 7. Model of Double Demotivation Source: adapted and modified from MacLachlan, M., & Carr, S.C. (2005). The human dynamics of aid. OECD Policy Insights , 10.
  8. 8. Findings (a) Pay & Benefits <ul><li>Pay disparities exist </li></ul><ul><ul><li>Overall pay ratio: 4:1 (ranged from 10:1 in SI and 8.5:1 in PNG to 2:1 in China) </li></ul></ul><ul><ul><li>Some difference in pay was tolerated (2-3:1) but actual ratio exceeded this </li></ul></ul><ul><ul><li>Pay sufficient to meet everyday needs? </li></ul></ul><ul><ul><ul><li>Local workers: 80% said No (Oceania and Africa, 29% in Asia) </li></ul></ul></ul><ul><ul><ul><li>Expat workers: 81% said Yes </li></ul></ul></ul><ul><li>Poverty is both (i) absolute and (ii) relative </li></ul>
  9. 9. Findings (b) Consequences for Work? <ul><li>Mean scores for justice and de-motivation (/5) </li></ul><ul><li>_______________________________________________________________________________________________________________________________________ </li></ul><ul><li>Site Ratio Justice De-motivation </li></ul><ul><li> (local-int’l) (local-int’l) __ </li></ul><ul><li>Overall 4.1 2.6 vs. 3.1 3.1 vs. 2.5 </li></ul><ul><li>Oceania 9.4 2.5 3.0 3.4 2.5 </li></ul><ul><li>Africa 3.4 2.4 3.1 3.2 2.6 </li></ul><ul><li>India 2.6 2.8 3.2 2.9 2.4 </li></ul><ul><li>China 1.9 3.0 2.5 </li></ul><ul><li>_______________________________________________________________________________________________________________________________________ </li></ul><ul><li>As Ratio drops below tolerance threshold, differences are NS. </li></ul>
  10. 10. Findings (b) Consequences for Work? <ul><li>Irrespective of pay group, significant predictors of de-motivation were: </li></ul><ul><ul><li>Feelings of pay Injustice (.50) </li></ul></ul><ul><ul><li>Remuneration Comparison (.11) </li></ul></ul><ul><ul><li>De-motivation predicted thinking about Turnover (.18) </li></ul></ul><ul><ul><li>De-motivation predicted thinking about international mobility (.13) (brain drain of locals and, to a lesser extent, early return of expatriates) </li></ul></ul>
  11. 11. (c) Organisations as ‘Capacitors’? <ul><li>Organisations moderated the links between: </li></ul><ul><ul><li>De-motivation and i) injustice; ii) comparison </li></ul></ul><ul><ul><li>Turnover and i) de-motivation; ii) injustice; iii) comparison </li></ul></ul><ul><li>Organisations with higher levels of comparison ( r =.37) and injustice ( r =.85) had more de-motivation </li></ul><ul><li>Organisations with higher levels of de-motivation ( r =.59), injustice ( r =.37) and comparison ( r =.46) had higher levels of thinking about turnover ( r =.59) </li></ul><ul><li>Important implications for Organisational Climate </li></ul>
  12. 12. (c) Organisations as ‘Capacitors’? <ul><li>Workshop presentations </li></ul><ul><li>5 x 20 stakeholder representatives </li></ul><ul><li>Expatriates invited, almost none turned up </li></ul><ul><li>Local organisations/representatives agreed: </li></ul><ul><ul><li>CLOSE THE GAP </li></ul></ul><ul><ul><li>Transparency of compensation systems </li></ul></ul><ul><ul><li>Pay for performance (need for performance management/appraisal) </li></ul></ul>
  13. 13. How can the gap be closed? <ul><ul><li>Localisation </li></ul></ul><ul><ul><ul><li>Local salaries only. Localised selection policy. Respect threshold </li></ul></ul></ul><ul><ul><li>Globalization </li></ul></ul><ul><ul><ul><li>Global salaries for a job. Single competency-based market </li></ul></ul></ul><ul><ul><li>“ Glocalisation” </li></ul></ul><ul><ul><ul><li>Local package, globally attractive </li></ul></ul></ul><ul><ul><li>Our next Step: “ADDUP to What?” (Intervention & Evaluation) </li></ul></ul><ul><ul><li>i.e., Keeping our own promise! </li></ul></ul>
  14. 14. Selected Outputs and Impact <ul><li>Outputs </li></ul><ul><li>Carr, S.C., McWha, I., MacLachlan, M., & Furnham, A. (Eds.). (2010). International Journal of Psychology: Special Section on Psychology and Poverty Reduction, in press. </li></ul><ul><li>MacLachlan et al, The Aid Triangle: recognising the human dynamics of dominance, justice and identity (London/NY: Zed) </li></ul><ul><li>Impact </li></ul><ul><li>Global Task Force for Humanitarian Work Psychology ( http://www.humworkpsy.org ) </li></ul><ul><li>Contributor to the 2010 “Review of the PNG-Australia Development Cooperation Treaty (1999),” through Mr. Leo Marai (Country Team Leader, PNG) </li></ul><ul><li>Contributor to the 2010 UN MDG Summit Civil Society consultation report: http://www.un-ngls.org/mdgconsultation </li></ul>
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