- Expatriates compensation: Benefits and premiums of choice with rationale
In compensating expatriates, an organization might consider several premiums and benefits. There are some factors to consider in choosing these premiums and benefits such as costs of living, access to healthcare, family care as well as foreign policies (Dowling, Festing & Engle, 2008). The benefits and premiums that I would choose include mobility premiums, hardship premiums, and healthcare and childcare benefits. These benefits and premiums are important because international expatriates travel to varied destinations thereby encountering different health and mobility risks (Martocchio, 2012). Considering that most expatriates work on voluntary basis, it is important to show them that their efforts are appreciated and that their concerns are the concerns of their hosts. Additionally, their children also need care. When the expatriates work abroad, their families might be affected in several ways thereby calling for their protection.
Caring for the family members, especially the children would help them cope with the absence of the parents as well as assure the parents of the safety of their children: most parents are only willing to work when they are sure that their families are safe. Therefore, my rationale for choosing the aforementioned benefits and premiums would be that the expatriates on board would need to be assured of their safety and security as well as that of their families. In order to encourage these expatriates, such premiums and benefits are important, considering the fact that they operate in alien territories.
- Comparison of US pay and benefits with those of other countries
In terms of pay and benefits, some countries like France and Italy have some packages that are better compared to the US system. Among those benefits is the comprehensive insurance in France that is offered for short-term expatriates. The benefit is much better compared to the US benefit, which does not provide for a comprehensive cover for those expatriates on short-term assignments. The other better comparing benefit is the Italy’s expatriate family benefits that seek to provide care to the entire family including heath and children education. The system supersedes the US system in that it provides a more comprehensive coverage to the expatriates’ family. In proposal of a better method for the US, I would propose adaption of the comprehensive insurance cover which would be more suitable in encouraging the expatriates to take up even more short term challenging roles in the international market which may involve significant risks. Such benefit is much needed in the current global work place that exposes expatriates to varying risks including health, political and war as well as technology. (Martocchio, 2012, 366)
- Lesson leant in class
Among the key lessons learnt in class is the nature of global rewards and pay as well as the factors that influence development and adaption of such systems by organizations in a global environment. In that respect, I have learnt that an organization needs to consider beyond the local factors in establishing its pay packages for expatriates who may be involved in some international assignments both short and long term. Such considerations should include the legal requirements for certain employees benefits and country specific factors that highly determines the working conditions in different regions that the expatriates are expected to work in. (Martocchio, 2012, 344)
Dowling, P.J. Festing, M. & Engle, A.D. (2008). International Human Resource
Management: Managing people in an international context. Fifth Ed. London: Cengage Learning.
Martocchio, J. (2012). Strategic Compensation: A Human Resource Management Approach. Seventh Ed. New Jersey: Prentice Hall.