#2
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HCS Content Administrato
on
6 Jul 2010 10:42 AM
Outcomes to Achieve
Understanding global remuneration begins with recognising variations(differences and similarities) and figuring out how best to manage them - this is a good starting point - for us to share good practics. On the basis of these practices, we can derive principles leading to efficiency and effectiveness, fairness and yet complying with different legal frameworks. This sharing should result in a commitment to engage in continuous learning in the practice of global remuneration.
Top Issues
1. Perceived Unfairness
2. Complexity
- different legal/regulatory, political and social environments
- global companies are pressured by institutional norms at their home country and in the local context.
3. Role of Trade Unions and Employee Involvement
4. Competitive Market Dynamics
- MNCs have more experience dealing with the issue of Global Remuneration
last edited by HCS Content Administrato on 7/7/2010 10:24:46 AM
#1
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HCS Content Administrato
on
6 Jul 2010 10:36 AM
Experiences from big global corporations such as Deutsche Bank, Nokia, Seimens and other major European companies tell us they need to change their remuneration system from “personality-based” to variable pay and performance-based in the context of globalization. Likewise, Japanese companies like Toyota have adopted merit-based systems and dismantled their traditional seniority-based pay system to compete effectively for talents in the global market.
The compelling business case for addressing this issue include:
- Attracting and retaining talents in the organization.
- Ensuring efficiency, fairness and compliance with regulations (across countries).
- Maintaining morale (how to pay foreign talents sufficiently to motivate them and yet not be too attractive such that it makes local talents feel resentful).
- Promoting a good image for the company.
last edited by HCS Content Administrato on 7/7/2010 10:26:01 AM