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Maximising the value of reward: thinking global, acting local - podcast 55

 
 
 
 
 
Reward Podcast 55
Date: 07 June 2011
 
Duration: 00:23:46
 
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Philippa Lamb introduces a discussion on global reward and whether it is different from local reward. The speakers are Charles Cotton, the CIPD’s Adviser on Reward, Peter Newhouse, Global Head of Reward at Unilever and Frances Richardson, Head of Reward at Oxfam. Charles Cotton starts by examining key issues affecting global reward and explaining the difference between global and local pay.

At Unilever there are 168,000 employees internationally, of whom 1,600 are globally mobile. Philippa wonders whether these international employees are paid according to where they are, or where they come from. Unilever, it appears, has tried both methods but is re-examining the issue at the moment because, as Peter Newhouse explains, there are many sensitivities involved.

Frances Richardson from Oxfam operates in 50 counties and likes to employ locals where possible, but if they need skills which can not be found in the country concerned, they send in an expat. The compensation system that Oxfam uses differs from that used at Unilever but brings a different set of problems. Listen to Frances explain why.

Incentivisation of international employees is vital but there’s a balance to be struck between career progression and pay, explains Peter. Frances uses a global framework to overcome the cultural differences in the perception of pay packages.

The discussion then turns to pensions and other benefits: convergence and divergence in different global cultures because of taxation, legal considerations and again, perceptions of what is desirable. Peter and Frances tell us how this is tackled in their organisations.

Lastly, Philippa asks about evaluating levels of pay. Listen to how these activities differ and the similarities in both organisations.

Links to related information


The 2011 annual survey of UK reward management, in partnership with Benefex, is based on responses received from 276 organisations, across all industrial sectors.   There will be a section on reward at our Manchester conference running later this year: November 8th, 9th and10th.  You can request a  brochure to be sent to you immediately they are published.

Don’t forget that you can join the Reward Forum to network with colleagues also in this field.

Next time we will discuss ‘shared purpose’. How companies create and sustain this vital goal.