Human resources


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Human resources

  1. 1. Brian K. Rakowski January 11, 2012 In the field of international human resources, many different obstacles face both the company and the employee who is being deployed. The concern that I found the most interesting was the compensation factor employees receive for international assignments. After deciding on this topic I searched the internet and found an extremely informative article on the subject written by Michael A. Conway, entitled International Business – Expatriate Compensation. Mr. Conway’s article explains the current methods utilized by most companies for benefits such as living allowances as well as schooling and other family expenses. His article explains that companies typically utilize a balanced expense report for their overseas employees listing maximum amounts for reimbursement on these expenses. The article suggests utilizing a different technique which provides a lump sum according to the employees pay grade equivalent to their position back in their home country. This would eliminate many of the problems that both the company and the employee face during their expatriate experience. One of the major concerns that the article addresses for the employee is that instead of handling their own financial concerns, the company addresses these concerns for the employee. Since they have no concern for the cost of their luxuries, as long as they don’t exceed their maximum allowances, the employee and their family live in a fashion that would be unavailable to them back in their home country. This tends to cause a form of resentment as well as an extended period of readjustment once the assignment is completed. During this period, the article states that the company could be spending as much as twenty five percent extra as opposed to what the employee actually needs to maintain an adequate living standard. Employees also tend to avoid savings during this period as they wish to explore the cultures of
  2. 2. Brian K. Rakowski January 11, 2012 their visiting country. A lump sum technique would help offset this expense as the employees are responsible for their own expenses overall. I feel that this article is crucial to this week’s lesson as we have discussed incentive programs in theory but not detail. Understanding the details that are included in this package would allow us to make insightful decisions regarding expatriate allowances for a win-win situation for both the company and the employee. Conway, Michael A. (February 13, 2008)International Business - Expatriate Compensation, Ezine@articles. Retrieved from