Joseph Santos discussion 4

by Joseph Santos – Thursday, 10 February 2022, 5:44 PM

Why is it important for MNCs to develop compensation and benefits policies that result in fair processes and outcomes?

Discussion

Four objectives ensure that compensation and benefits policies result in fair processes and outcomes. They need to be consistent with business strategies, maximize recruitment and retention efforts, be cost-effective, and create a fair process and result. The first objective needs to align with the business objectives and character. The second objective is to make sure that MNC’s hire the right people for the right job (Reiche et al., 2019). For example, employees who want to transfer to work on an assignment in a different country make sure they know the other country’s cultural norms (Reiche et al., 2019). The third objective is to make sure they are cost-effective, ensuring that employees receive incentives or premiums for foreign services, reimbursements for certain costs, and tax equalization (Reiche et al., 2019).

The main objective that I will discuss is to result in a fair process and outcome. This needs to be fair for everyone working in the company because they need to know that they matter and that their families are taken care of. Most MNC’s design programs are treated relatively fairly regarding whatever assignment they are working on (Reiche et al., 2019). The main thing when it comes to making sure the compensation and benefits are fair and ensuring that the employees can voice their view argument during a procedure and help out on the actual conclusion itself (Reiche et al., 2019). Suppose these three things happen, and there is a fair process. Three benefits will come out of that case: higher job satisfaction, better performance on their overseas assignments, and the likelihood to remain repatriated (Reiche et al., 2019). All of these three things will happen because the employees are happy and feel that they are taken care of when they are doing an assignment for a company.

Conclusion

In conclusion, these four objectives are all essential to ensure that the total rewards policies make up the international total rewards work for the organization and employees. The main objective that is important is to make sure that it is fair and has a positive process and outcome for everyone involved. The reason is that this will help keep the employees wanting to work and stay within the company. For example, at my company, they offer a 401k to all of its employees and will work with each employee to see how much they want to match it individually so that it is fair for each employee who wants to contribute to their 401k. Another example is at my company Cintas every year; each employee gets a performance review. This performance review is for managers to evaluate the employee’s contribution to the organization and see what pay increase they will receive. Every employee gets the same boost per year based on the managers’ system to make it fair for each employee.

References

Reiche, Sebastian, Harzing, Anne-Wil & Tenzer Helene. (2019). “International Human Resource Management” SAGE. 2019 483-492

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