Skip to main content Accessibility help
×
Hostname: page-component-586b7cd67f-l7hp2 Total loading time: 0 Render date: 2024-11-22T06:50:42.846Z Has data issue: false hasContentIssue false

5 - Compensating Global Mobility

from Part I - The Expatriation Process of Corporate Expatriates

Published online by Cambridge University Press:  12 November 2020

Jaime Bonache
Affiliation:
Carlos III University of Madrid
Chris Brewster
Affiliation:
University of Reading
Fabian Jintae Froese
Affiliation:
University of Goettingen
Get access

Summary

In this chapter, we provide a review of mainstream practice and research on global mobility compensation. We begin by briefly explaining the traditional system used for international compensation, namely, the balance sheet system, and identify its main advantages and weaknesses. We then describe and structure the current landscape of international compensation, highlighting the increasing variety and complexity that characterizes this essential area of global competitive dynamics in human resources. The paper concludes with a discussion of some topics and themes for future research in this area.

Type
Chapter
Information
Publisher: Cambridge University Press
Print publication year: 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adams, J. S. 1965. Inequity in social exchange. In Berkowitz, L. (ed.), Advances in Experimental Social Psychology, 2: 267299. New York: Academic Press.Google Scholar
AIR Inc. 2010. Diverse Expatriate Populations – Alternative Remuneration Packages. New York: AIR Inc.Google Scholar
AIR Inc. 2011. Local-Plus: Tips, Tools and Trends. New York: AIR Inc.Google Scholar
Barney, J. B. 2001. Resource-based theories of competitive advantage: a ten-year retrospective on the resource-based view. Journal of Management, 27(6): 643650.CrossRefGoogle Scholar
Baron, J. N. & Kreps, D. M. 1999. HRM in emerging companies. Strategic Human Resources. New York: Wiley.Google Scholar
Bitten, J. 2001. Compensation strategies for international assignments: alternatives to the balance sheet. HR Professional, 18(2): 2931.Google Scholar
Bonache, J. 2004. Towards a re-examination of work arrangements: an analysis from Rawls’ theory of justice. Human Resource Management Review, 14(4): 395408.Google Scholar
Bonache, J. 2005. Job satisfaction among expatriates, repatriates and domestic employees: the perceived impact of international assignments on work-related variables. Personnel Review, 34(1): 110124Google Scholar
Bonache, J. 2006. The compensation of expatriates: a review and a future research agenda. In Stahl, G. & Bjorkman, I., Handbook of Research in International Human Resource Management: 158175. Cheltenham: Edward Elgar Publishing.Google Scholar
Bonache, J. & Noethen, D. 2014. The impact of individual performance on organizational success and its implications for the management of expatriates. The International Journal of Human Resource Management, 25(14): 1960 –1977.Google Scholar
Bonache, J. & Pla-Barber, J. 2005. When are international managers a cost effective solution? The rationale of transaction cost economics applied to staffing decisions in MNCs. Journal of Business Research, 58(10): 13201329.CrossRefGoogle Scholar
Bonache, J., Sanchez, J. I., & Zárraga-Oberty, C. 2009. The interaction of expatriate pay differential and expatriate inputs on host country nationals’ pay unfairness. The International Journal of Human Resource Management, 20(10): 21352149.CrossRefGoogle Scholar
Bonache, J. & Stirpe, L. 2012. Compensating global employees. In Stahl, G. K., Björkman, I., & Morris, S., (eds.), Handbook of Research in International Human Resource Management (2nd ed.): 162182. Cheltenham: Edward Elgar Publishing.Google Scholar
Bonache, J. & Zárraga-Oberty, C. 2017. The traditional approach to compensating global mobility: criticisms and alternatives. The International Journal of Human Resource Management, 28(1): 149169.CrossRefGoogle Scholar
Bonache, J. & Zárraga-Oberty, C. 2020. Compensating Global Mobility in a Workers’ Cooperative: an interpretive study, in Journal of World Business, in Press.CrossRefGoogle Scholar
Brookfield, 2015. Global Relocation Trends Survey Report. Woodridge, IL.Google Scholar
Caligiuri, P. & Bonache, J. 2016. Evolving and enduring challenges in global mobility. Journal of World Business, 51(1): 127141.CrossRefGoogle Scholar
Chen, C. C., Choi, J., & Chi, S. C. 2002. Making justice sense of local-expatriate compensation disparity: mitigation by local referents, ideological explanations, and interpersonal sensitivity in China-foreign joint ventures. Academy of Management Journal, 45(4): 807826.CrossRefGoogle Scholar
Chen, G., Ployhart, R. E., Thomas, H. C., Anderson, N., & Bliese, P. D. 2011. The power of momentum: a new model of dynamic relationships between job satisfaction change and turnover intentions. Academy of Management Journal, 54(1): 159181.Google Scholar
Dickover, G. F. 1957. Employee relations in foreign operations. In Case Studies in Foreign Operations: International Management Association: 118133.Google Scholar
Edström, A. & Galbraith, J. R. 1977. Transfer of managers as a coordination and control strategy in multinational organizations. Administrative Science Quarterly, 22(2): 248.CrossRefGoogle Scholar
Farndale, E., Scullion, H., & Sparrow, P. 2010. The role of the corporate HR function in global talent management. Journal of World Business, 45(2): 161168.DOI:10.1016/j.jwb.2009.09.012.CrossRefGoogle Scholar
Festing, M. & Perkins, S. 2008. Rewards for internationally mobile employees. In Dickmann, M., Brewster, C., & Sparrow, P. (eds.), International Human Resource Management: A European Perspective: 150173. Oxon: Routledge.Google Scholar
Festinger, L. 1954. A theory of social comparison processes. Human Relations, 7: 117140.CrossRefGoogle Scholar
Gomez-Mejia, L. R., Berrone, P., & Franco-Santos, M. 2014. Compensation and Organizational Performance: Theory, Research, and Practice. Abingdon: Routledge.Google Scholar
Gupta, A. K. & Govindarajan, V. 2002. Cultivating a global mindset. The Academy of Management Executive, 16(1): 116126.Google Scholar
Harvey, M. G. 1993a. Designing a global compensation system: the logic and a model. Colombia Journal of World Business, 28: 5672.CrossRefGoogle Scholar
Harvey, M. G. 1993b. Empirical evidence of recurring international compensation problems. Journal of International Business Studies, 24(4): 785799.CrossRefGoogle Scholar
Kahneman, D. & Tversky, A. 1984. Choices, values and frames. American Psychologist, 39(4): 341350.Google Scholar
KPMG 2016. Global Assignment Policies and Practices. Publication number: 133764-G.Google Scholar
Leung, K., Zhu, Y., & Ge, C. 2009. Compensation disparity between locals and expatriates: moderating the effects of perceived injustice in foreign multinationals in China. Journal of World Business, 44(1): 8593.CrossRefGoogle Scholar
Lowe, K. B., Milliman, J., De Cieri, H., & Dowling, P. J. 2002. International compensation practices: a ten‐country comparative analysis. Human Resource Management: Published in Cooperation with the School of Business Administration, The University of Michigan and in alliance with the Society of Human Resources Management, 41(1): 4566.CrossRefGoogle Scholar
McNulty, Y. 2014. The opportunity costs of local-plus and localization approaches to expatriate compensation. In Berger, L. and Berger, D. (eds.), The Compensation Handbook 6th ed. Columbus: McGraw-Hill Education.Google Scholar
McNulty, Y. 2015. Employing novel compensation approaches to compete for expatriate talent. In L. Berger and D. Berger (eds.), The Compensation Handbook: A State-of-the-Art Guide to Compensation Strategy and Design 6th ed.: 503–518. Columbus: McGraw-Hill Education. ISBN-13: 978–0071836999. Reprinted in: Mendenhall, M., G. Oddou, G. Stahl, & R.S. Reiche (eds.). (2016). Readings and Cases in International HRM and OB (5th ed.), in press.Google Scholar
McNulty, Y., De Cieri, H., & Hutchings, K. 2009. Do global firms measure expatriate return on investment? An empirical examination of measures, barriers and variables influencing global staffing practices. International Journal of Human Resource Management, 20(6): 13091326.CrossRefGoogle Scholar
Mercer 2015. Worldwide Survey of International Assignment Policies and Practices. Geneva: Mercer.Google Scholar
Nowak, C. & Linder, C. 2016. Do you know how much your expatriate costs? An activity-based cost analysis of expatriation. Journal of Global Mobility, 4(1): 88107.CrossRefGoogle Scholar
Oltra, V., Bonache, J., & Brewster, C. 2013. A new framework for understanding inequalities between expatriates and host country nationals. Journal of Business Ethics, 115(2): 291310.Google Scholar
O’Really, M. 1996. Expatriate pay: the state of the art. Compensation and Benefits Review, 12(1): 5460.Google Scholar
Paik, Y., Parboteeah, K. P., & Shim, W. 2007. The relationship between perceived compensation, organizational commitment and job satisfaction: the case of Mexican workers in the Korean Maquiladoras. International Journal of Human Resource Management, 18(10): 17681781.CrossRefGoogle Scholar
Phillips, L. & Fox, M. A. 2003. Compensation strategy in transnational corporations. Management Decision, 41(5): 465476.Google Scholar
Reiche, B. S., Kraimer, M. L., & Harzing, A. W. 2011. Why do international assignees stay? An organizational embeddedness perspective. Journal of International Business Studies, 42(4): 521544.Google Scholar
Reynolds, C. 1997. Expatriate compensation in historical perspective. Journal of World Business, 32(2): 118132.CrossRefGoogle Scholar
Shaffer, M. A, Harrison, D., & Gilley, M. 1999. Dimensions, determinants, and differences in the expatriate adjustment process. Journal of International Business Studies, 30(3): 557581.Google Scholar
Stahl, G. K., Miller, E., & Tung, R. 2002. Toward the boundaryless career: a closer look at the expatriate career concept and the perceived implications of an international assignment. Journal of World Business, 37: 216227.Google Scholar
Suutari, V. & Tornikoski, C. 2000. Determinants of expatriate compensation–Findings among expatriate members of SEFE. Finnish Journal of Business Economics, 49(4): 517539.Google Scholar
Suutari, V. & Tornikoski, C. 2001. The challenge of expatriate compensation: the sources of satisfaction and dissatisfaction among expatriates. The International Journal of Human Resource Management, 12(3): 389404.CrossRefGoogle Scholar
Toh, S. M. & DeNisi, A. 2003. Host country national reactions to expatriate pay policies: a model and implications. Academy of Management Review, 28(4): 606621.CrossRefGoogle Scholar
Tornikoski, C., Suutari, V., & Festing, M. 2014. Compensation package of international assignees. The Routledge Companion to International Human Resource Management, 289.Google Scholar
Welch, C. L., Welch, D. E., & Tahvanainen, M. 2008. Managing the HR dimension of international project operations. The International Journal of Human Resource Management, 19(2): 205222.Google Scholar
Yan, A., Zhu, G., & Hall, D. T. 2002, International assignments for career building: a model of agency relationships and psychological contracts. Academy of Management Review, 27(3): 373391.Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×