Expatriate Compensation

Mark Bussin

Description

Working in the field of expatriate compensation is extremely complex. Designing and administering appropriate pay levels and rewards for a globally mobile workforce present multi-faceted difficulties and challenges for all organisations and international consultants. Not only must we deal with the technical exercise of calculating and equating quality-of-life standards for mobile employees, but we must also address the psychological issues of transferring employees from one culture to another sometimes vastly different one. There is a lot at stake here: from an organisational productivity and cost perspective all the way through to employee performance and motivation. Without question, successfully addressing and resolving all of the quantitative and qualitative issues and concerns with mobility are what separates premier global human resources professionals from the average players.Dr Bussin's latest book, Expatriate Compensation, is an aggregation of his extensive experiences working in the field. He and his cadre of expert authors comprehensively cover every aspect of dealing successfully with international assignments and the mobile employee: from the reasons to go global to setting appropriate market-based pay rates, tax implications, recognising and rewarding performance and dealing with employee motivational issues. Moreover, Dr Bussin has the gift of taking this very complex subject matter and distilling it so that it can be easily understood and absorbed. Indeed, all of the information in the book is presented in a practical, straightforward,and real-world manner.The contents include: Expatriate assignment approaches Fringe benefits Career management of expatriates Job pricing Expatriate reward models Cost-of-living data, expatulator and calculations Taxation and the expatriate Performance management How to retain Your expatriates Trendsetting solutions in an increasingly mobile world Repatriation and reintegration Expatriate management systems Critical success factorsDr Bussin is the chairperson of 21st Century Pay Solutions, a board member, Remuneration Committee chair, and audit committee member of several large organisations. He has held Global Reward positions in several multinational organisations. Mark holds a Doctorate of Commerce and supervises MBA, Masters and PhD students doing their research and theses. He is the author of four books and over 300 popular articles.

Sujets

• Gestion et management

Informations

• Publié par: Knowres Publishing
• Date de parution: 28 février 2015
• Nombre de lectures: 0
• EAN13: 9781869225346
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

E xpatriate
C ompensation


A practical and informative textbook for
managing expatriate compensation, mobility, and international assignments in the world of work



Dr Mark Bussin







2015
Copyright © Knowres Publishing and Mark Bussin and all contributors

All reasonable steps have been taken to ensure that the contents of this work do not, directly or indirectly, infringe any existing copyright of any third person and, further, that all quotations or extracts taken from any other publication or work have been appropriately acknowledged and referenced. The publisher, editors and printers take no responsibility for any copyright infringement committed by an author of this work.
Copyright subsists in this work. No part of this work may be reproduced in any form or by any means without the written consent of the publisher or the author.
While the publisher, editors and printers have taken all reasonable steps to ensure the accuracy of the contents of this work, they take no responsibility for any loss or damage suffered by any person as a result of that person relying on the information contained in this work.
First published in 2015
ISBN: 978-1-86922-523-0 (Printed)
eISBN: 978-1-86922-524-7 (PDF ebook)
EPub: 978-1-86922-534-6
Mobi: 978-1-86922-535-3
Published by Knowres Publishing (Pty) Ltd
P O Box 3954
Randburg
2125
Republic of South Africa
Tel: [phone]
Fax: [phone]
E-mail: [e-mail]
Website: www.kr.co.za
Printed and bound: Mega Digital (Pty) Ltd. Parow Industria, Cape Town
Typesetting, layout and design: Stephani Krugel, [e-mail]
Cover design: Cia Joubert, [e-mail]
Editing and proofreading: Adrienne Pretorius, [e-mail]
Project management: Cia Joubert, [e-mail]
Index created with: TExtract, www.Texyz.com
Acknowledgements



This book would not have been published without the contributions from many very dedicated people – thank you for sharing your expertise.
Thank you to the authors of, and contributors to, the relevant chapters.
Thanks to John Rubino, a son of the soil and a legend in this field internationally, for the Foreword.
Knowledge Resources, thank you for co-ordinating the production and marketing of this book.
A special thank you to Chris Blair for your insight.
A giant thank you to Marina, Daniel, Kate, Genna and James for your inspiration and patience.
To you, the reader, I look forward to receiving your inputs and to building in the experiences that you have had with expatriate management and to how we can improve our knowledge and practice in this relatively poorly practised field of management.
Professor Mark Bussin
Johannesburg
February 2015
Please feel free to contact me with suggestions that can build on this version.
[e-mail]
www.drbussin.com
Mobile: [phone]
Foreword


Working in the field of expatriate compensation is extremely complex. Designing and administering appropriate pay levels and other rewards for a globally mobile work force present multi-faceted difficulties and challenges for all organisations and international consultants. Not only must we deal with the technical exercise of calculating and equating quality-of-life standards for mobile employees, but we must also address the psychological issues of transferring employees from one culture to another, sometimes vastly different, one. There is a lot at stake here: from an organisational productivity and cost perspective all the way through to employee performance and motivation. Without question, successfully addressing and resolving all of the quantitative and qualitative issues and concerns with mobility are what separates premier global human resources consultants from just the average players.
Dr Mark Bussin has earned his place at the premier level. Through his many years of consulting activities and a plethora of published works, Dr Bussin has distinguished himself as a “go to” consultant who understands intimately what it takes to design and administer human resources and employee mobility programmes comprehensively and successfully.
Dr Bussin’s latest book, Expatriate Compensation , is an aggregation of his extensive experiences working in the field. He and his cadre of expert authors comprehensively cover every aspect of dealing successfully with international assignments and the mobile employee: from the reasons to go global all the way through to setting appropriate market-based pay rates, tax implications, recognising and rewarding performance, and employee motivational issues. Moreover, Dr Bussin has the gift of taking this very complex subject matter and distilling it so that it can be easily understood and absorbed. Indeed, all of the information in the book is presented in a practical, straightforward, and real-world manner.
As the globe continues to shrink and the interconnectivity of business operations across multiple countries increasingly becomes the standard, this excellent book is critically important and very timely. The stakes for employee mobility are too high and the organisational and human costs are too great not to be able to get it right. Dr Mark Bussin’s book offers everyone working in the field of expatriate compensation much-needed guidance to help ensure successful results. Enjoy!
John A. Rubino
President: Rubino Consulting Services – a global human resources consulting company
Pound Ridge, New York, USA
December 2015
Table of Contents

SOURCING OF FIGURES AND DIAGRAMS
ABOUT THE AUTHOR
LIST OF CONTRIBUTORS
PROLOGUE AND PREAMBLE
CHAPTER 1: INTRODUCTION AND CONTEXT
1.1 INTRODUCTION
1.2 BACKGROUND
1.3 WHY GLOBALISE?
1.4 KEY CONCEPTS
1.5 THE EVOLUTION OF INTERNATIONAL ASSIGNMENTS
1.6 CONCLUSION
1.7 REFERENCES
CHAPTER 2: EXPATRIATE ASSIGNMENT APPROACHES
2.1 INTRODUCTION
2.2 MOBILITY AS AN IMPORTANT PART OF A GLOBAL LEADERSHIP DEVELOPMENT STRATEGY
2.3 LEADERSHIP DEVELOPMENT INTERVENTIONS
2.4 THE PURPOSE OF INTERNATIONAL ASSIGNMENTS
2.5 OVERVIEW: INTERNATIONAL ASSIGNMENT COMPENSATION APPROACHES
2.6 THE COMPLEXITIES OF EXPATRIATE COST-OF-LIVING ISSUES
2.7 MANAGING THE COST OF LIVING IN HIGH-INFLATION
LOCATIONS
2.8 THE CURRENT ENVIRONMENT – MOVING TOWARDS
SEGMENTATION
2.9 TRENDS IN ALTERNATIVE APPROACHES
2.10 IMPACT OF EMERGING MARKETS ON EXPATRIATE POLICIES
2.11 GLOBAL PHENOMENA: THE WAR FOR TALENT
2.12 THE COMPLEXITIES OF PAY PRACTICES IN EMERGING MARKETS
2.13 REVISITING EXPATRIATE PACKAGES: LOCAL HOUSING VERSUS EXPATRIATE HOUSING
2.14 REVISITING EXPATRIATE PACKAGES: COMPLETION BONUSES AS
A MOBILITY INCENTIVE
2.15 CALCULATING EXPATRIATE RETURN ON INVESTMENT (ROI)
2.16 REFERENCES
CHAPTER 3: INTERNATIONAL CRUCIBLE ASSIGNMENTS
3.1 INTRODUCTION
3.2 BACKGROUND
3.3 ADOPTING A LEARNING AND DEVELOPMENT APPROACH TO INTERNATIONAL ASSIGNMENTS
3.4 THE CONTENT AND CONTEXT OF THE INTERNATIONAL
ASSIGNMENT ROLE
3.5 THE SCOPE OF THE INTERNATIONAL ASSIGNMENT ROLE
3.6 THE TIMING OF THE INTERNATIONAL ASSIGNMENT
3.7 THE TOTAL NUMBER OF INTERNATIONAL CRUCIBLE ASSIGNMENTS
3.8 THE DURATION OF INTERNATIONAL CRUCIBLE ASSIGNMENTS
3.9 CONNECTING THE ICA ROLE TO PAST AND FUTURE CAREER
CHOICES
3.10 THE FUTURE OF INTERNATIONAL CRUCIBLE EXPERIENCES
3.11 CONCLUSION
3.12 REFERENCES
CHAPTER 4: BENEFITS
4.1 INTRODUCTION
4.2 ALLOWANCES IN LIEU OF BENEFITS
4.3 ACCOMMODATION
4.4 SCHOOLING
4.5 ARRIVAL IN HOST COUNTRY
4.6 TRANSPORT IN THE HOST COUNTRY
4.7 HOME FLIGHTS
4.8 STORAGE OF PERSONAL EFFECTS IN THE HOME COUNTRY
4.9 SCHOOLING IN THE HOME COUNTRY
4.10 MEDICAL TESTING
4.11 LANGUAGE AND CULTURE TRAINING
4.12 OTHER FAMILY CONSIDERATIONS
4.13 HOME COUNTRY ACCOMMODATION
4.14 IMMIGRATION FORMALITIES
4.15 COST CONSIDERATIONS
4.16 INTEGRATION WITH TALENT MANAGEMENT
CHAPTER 5: GROWTH STATISTICS FOR AFRICA
5.1 INTRODUCTION
5.2 ECONOMY
5.3 SOUTH AFRICA AND NIGERIA
5.4 THE GLOBAL FINANCIAL CRISIS
5.5 THE IMPACT OF ECONOMIC GROWTH
5.6 GENDER DISCRIMINATION IN AFRICA
5.7 CONCLUSION
5.8 REFERENCES
CHAPTER 6: CONDUCTING BUSINESS IN AFRICA – UNVEILED
6.1 INTRODUCTION
6.2 KEY FACTORS TO CONSIDER WHEN CONDUCTING BUSINESS
IN AFRICA
6.3 GUIDELINES FOR CONDUCTING BUSINESS IN AFRICA
6.4 CONCLUSION
CHAPTER 7: EXPATRIATE ASSIGNMENTS
7.1 INTRODUCTION
7.2 GENERAL ADJUSTMENT: THE EXPATRIATE FAMILY
7.3 INTERACTION, CULTURAL OR SOCIAL/SOCIO-CULTURAL
ADJUSTMENT
7.4 WORK ADJUSTMENT
7.5 THE U-CURVE OF CROSS-CULTURAL ADJUSTMENT
7.6 EXPATRIATE SELECTION
7.7 CONCLUSION
7.8 REFERENCES
CHAPTER 8: CAREER MANAGEMENT OF EXPATRIATES
8.1 INTRODUCTION
8.2 CAREER PATH MANAGEMENT
8.3 MOTIVATIONS FOR EXPATRIATE ASSIGNMENTS
8.4 CAREER MANAGEMENT OF EXPATRIATES
8.5 REPATRIATE AGREEMENT
8.6 REPATRIATION PROGRAMMES
8.7 CONCLUSION
8.8 REFERENCES
CHAPTER 9: JOB SIZING – JOB EVALUATION
9.1 INTRODUCTION
9.2 JE ASY WEB-BASED JOB EVALUATION SYSTEM
9.3 UNIQUE FEATURES
9.4 CONCLUSION
CHAPTER 10: JOB PRICING – UNDERSTANDING REWARDONLINER
10.1 INTRODUCTION
10.2 CONCLUSION
CHAPTER 11: SALARY-STRUCTURING ANATOMY
11.1 INTRODUCTION
11.2 CORE COMPONENTS OF A SALARY STRUCTURE
11.3 WHAT INFLUENCES THE DESIGN OF A SALARY STRUCTURE?
11.4 PURPOSE OF A SALARY STRUCTURE
11.5 PAY SCALE DESIGN CRITERIA – DEFINING THE EXTERNAL
MARKET COMPARISON
11.6 DESIGN OF A SALARY STRUCTURE
11.7 CONSIDERATIONS FOR PROGRESSION WITHIN THE PAY SCALE
11.8 SOME CLOSING THOUGHTS
CHAPTER 12: EXPATRIATE REWARD MODELS
12.1 INTRODUCTION
12.2 REWARD AND REMUNERATION
12.3 INTERNATIONAL REMUNERATION
12.4 BENCHMARK FINDINGS, AND LESSONS LEARNT
12.5 REFERENCES
CHAPTER 13: COST-OF-LIVING DATA, EXPATULATOR AND
CALCULATIONS
13.1 INTRODUCTION
13.2 COST-OF-LIVING DATA
13.3 EXPATRIATE CALCULATIONS
13.4 CONCLUSION
13.5 REFERENCES
CHAPTER 14: TAXATION AND THE EXPATRIATE
14.1 INTRODUCTION
14.2 SOURCE AND RESIDENCY