This factsheet was last updated in June 2013.
International reward strategy
Developing any reward system needs careful thought about the purpose of the reward. One aspect is to pay people for the efforts and contribution that they have made. However, reward is also more complex than this, and consideration needs to be given to motivation, how competitors structure pay and benefits and the expectations of employees.
By definition, international reward strategies need to take into account multiple settings, including the parent country, the host country and other countries which might be the source of, for example, employees, finance, or research and development.
Cultural differences may affect the way employees view the effort-reward relationship. Political/legal structures will have an impact on the nature, value and how rewards are implemented and viewed by employees. In the case of employees sent on international assignments outside their country of origin, career planning and career-lifestyle support issues take on an even greater significance as part of the total reward portfolio.
An organisation can adopt one of three main approaches:
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- International reward strategy
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