only helps the individual going for the job, but it helps the organization home in on the type of employee they are looking for in that job. By having the right questions to ask can really help in this area (Bodolica & Waxi, 2007) . 6. What are the different expatriate compensation methods you recognized in the text? What are the advantages and disadvantages of these different expatriate compensation methods? The first expatriate compensation method mentioned was the method of negotiation. Each expatriate is treated on an individual basis, according to this method; the components included in the compensation package are the final outcome of the expatriate-company negotiations. In
CHICAGO FOOD AND BEVERAGE COMPANY 5 addition, due to its administrative simplicity and little information about cost of living and tax problems in host countries, this compensation formula is beneficial, however, very time consuming and the cost was out of control. Then there is the International method, where the parent company allows the expatriate to make the same accommodation, goods and services costs in a host country as the parent company would have incurred if the employee had remained at home. Furthermore, in order to balance extra expenses for the host nation owing to greater living costs in the host nation, the firm commits to keeping its expats ' procurement powers in the nation, making certain changes to their home compensation package. The key objective of this approach is to ensure the international assignment of expatriate workers is not better or worse off. Obviously, the compensation package given to Paul differs from those held in other regions (Bodolica & Waxi, 2007) .. Most often, the region dictates what is included in the compensation package, for example in my job, U.S. Air Force we have a bunch of different allotments that we receive however, differ based on the area we live in. This is called a Cost of Living Allowance also known as COLA. In areas like Hawaii, the COLA is high, areas like Alabama, the COLA is low because it doesn’t cost much to live there. In Paul’s case, the COLA is different living in Vietnam, and differs from that of the Hong Kong expatriate manager. This is an essential topic that must be addressed, so that the person knows exactly what they will be receiving. I have interviewed people for positions that were so excited for the job I asked them if they were ready to start and they said yes. I then told them jokingly what they would be receiving coming in with a very low number with all these responsibilities. The look on their faces was priceless. Of course, I let them know after the fact but, just like this scenario, it's important to know what you are getting into.
CHICAGO FOOD AND BEVERAGE COMPANY 6 7.
- Spring '12
- Expatriate, Beverage Company