Question

The Vice President of Human Resources for the international position you pretended to apply for in the International Job Search experiential exercise is trying to determine the appropriate compensation for the job. Based on the key components of an international compensation program mentioned in your textbook, you are being asked to develop a compensation package for the position you pretended to apply for. Explain the rationale for your design. Your recommendations must include numerical data, percentages, etc. based on the text and research, and must include your response to the following instructions:

1. a) Now that you have determined the components of the salary for the position, what benefits will you include in the compensation package? b) What are the main points you will have to consider when deciding how to provide the benefits you are proposing? For example, what considerations are there for pension plans?

Answer 1

The components of the compensation plan for a salary of $79, 840 are:

- Base Salary- About 50% ($39,920) is the base pay on $79, 840.

- Housing cost/allowance- 30% of $60,000 is $18000 because it takes about $100,000 for my family of four members as it takes approximately $60,000 on the household goods and services.

- Conveyance allowance- this involves transport allowance to help employees commute from home to workplace ($10,960).

- Medical allowance- This is the fixed expenditure to help employees for their medical expenses ($10,960).

The salary component also includes gratuity, employee provident fund (usually 12% is deducted from employees’ salary automatically), Professional tax levied on the salary of the employees.

a) The benefits that would be included in the salary are:

a. Educational allowance for children

b. Emergency leave

c. Language and cultural training

d. Spousal employment and relocation.

b) The main points that I would consider when deciding how the benefits are proposed are based on:

a. Family of the expatriate- spousal needs such as relocation assistance and work permit

b. Family is based in some other country hence emergency leaves are a great benefit to be used in unexpected situations.

c. The expatriate ultimately works for his/her children hence educational allowance needs to be provided for the children.

d. Considerations for pension plans are the retirement age, experience in the company, etc.

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