Question

You have recently accepted a position as Human Resource Director for Jupiter Industries, a multi-national organization operating across 5 business segments, specifically, industrial valves and controls, plastics, fire suppression equipment, electronic components, and specialized medical products. Jupiter Industries has established worldwide headquarters in Bremen, Germany, and has groups located in the Americas, Europe, Asia and Pacific Rim countries. The MENA group is the most recently formed division within the Jupiter organization, and is composed of various concentric businesses that fit into one of the five organizational business segments, all of which have been acquired over the past two years in both the Middle East region (Saudi Arabia, UAE, Oman, Bahrain, and Jordan) as well as North Africa (Egypt, Morocco, Tunisia, and Algeria). You will be working at the MENA headquarters located in Manama, Bahrain and will be responsible for all divisions located in the MENA (Middle East, North Africa) region. You will report directly to the VP of Operations in Manama, with dotted-line reporting responsibility to Chief Human Resources Officer (CHRO) in Bremen. Specifically, you are being tasked with establishing Human Resource policy and practice in regard to strategic collaboration with divisional heads, utilizing HRIS systems in addressing areas such as recruitment and retention, training and development, performance management programs, compensation management, employee benefit programs and employee relations, including motivational programs, incentive programs, and disciplinary procedures. You will be working on policies and procedures that can be utilized throughout the region, to bring some semblance of order and uniformity in dealing with strategic HR employee programs. After a thoughtful review of current HR programs for the region, you will prepare a report for the VP of Operations and CHRO and distribute to all division heads, formulating your HR strategic goals across all HR areas of responsibility, highlighting recommendations for improving the overall impact of these programs on talent management initiatives including attraction and retention of top talent and the methodologies used to do so. This report will be inclusive of all Human Resource functions and provide both strategic and operational goals of the desired outcomes and, the means or “how” to reach these deliverables.

What type of international assignee compensation plan would you suggest for Bremen expat employees appointed to 3-year assignments in Egypt and Morocco? Explain. What type of international assignee compensation plan would you suggest for Bremen expat employees appointed to 3-year assignments in Saudi Arabia and Jordan?

Answer 1

Answer:

The type of international assignee compensation plan we would suggest for Bremen expat employees appointed to 3-year assignments in Egypt and Morocco will be as below

· The compensation will be as per the home country’s compensation i.e. the compensation meeting the average compensation of Egypt or Morocco nation. The expat’s compensation will be as per the compensation of people of origin of Egypt and Morocco. Pay is in the order of $8000/month.

· The compensation will be kept with respect to the average compensation of the similar profile in the Egypt or Morocco because the compensation is low in these nations and it will be right to keep the competitive compensation as per Egypt or Morocco’s compensation in their market.

· This will help the business to save compensation cost and keep the expat as low cost to company.

The type of international assignee compensation plan we would suggest for Bremen expat employees appointed to 3-year assignments in Saudi Arabia and Jordan will be as below

· The compensation of the Saudi Arabia and Jordan are very high and they are of the order of $13000/ month. Thus we will not keep the compensation as per the average compensation of the Saudi Arabia or Jordan, but we will keep the compensation as per the home country and will provide some monthly or daily allowance for the expat employee in this Saudi Arabia and Jordan nations.

· This approach will help to manage the compensation and the employee will be comfortable in his home pay and bonus at Saudi Arabia or Jordan nation will be an additional earning for the employee.