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Running Head: Compensation and Benefits Page 1Compensation and BenefitsBy Alina WalengaLori WhiteFundamentals of Human Resource ManagementBUS3040May 31, 2020
COMPENSATION AND BENEFITS Page 2Compensation and BenefitsIntroductionTo properly determine compensation and benefits for a new executive position in London, U.K., Java Corp.’s HR department needs to establish guidelines for an International Expatriate Compensation Plan. The term of the initial assignment is two years. In designing a preliminary compensation package, focus will be on outlining base pay, bonuses, benefits, and any additional incentives made available to the new candidate.London is one of the most expensive cities in the world, with the highest wages in the United Kingdom. Finding affordable housing in London is problematic, and the cost of food, clothing and transportation is quite high (Lambert, 2019). The cost of renting a furnished 900 sqft apartment varies between $2,342 to $3,246 per month, with the most expensive living accommodations near the financial district (Ross, 2020). Utilities are around $145, gallon of gas costing $6.32 and a monthly ticket for public transportation being around $180.00 (Ross, 2020).Grocery stores, fine-dining and casual restaurants can be expensive, with milk costing $5.90 a gallon, a three-course meal up to $104.00 without alcohol, and a basic lunch costing $16.00 (Ross, 2020). “Coffee prices range between $3 and $6 for a cappuccino, and the average pint of beer is available for around $7” (Ross, 2020).The cost of living in London for a professional is quite high, with more than a third of thesalary going to covers housing costs, groceries, and transportation. “Labor markets consist of workers who want to earn as much as possible. To attract and keep workers, employers must pay at least the going rate in their labor markets” (Noe et al., 2020). The average working London resident earns a monthly net salary of $2,830.00 close to $60,000 per year with taxes of
COMPENSATION AND BENEFITS Page 3approximately 18% of the total annual salary. However, base salary for an executive position exceeds $150,000 per year.