Evaluation of factors determining the setting of wages for British Essay

Evaluation of factors determining the setting of wages for British expatriates - Essay Example Human resources can be termed as a critical concern to all managers. It is a crucial resource that exploits all the other resources to produce the desired result in the organization. Thus, the accurate placement of employees is a key element of any organization, which makes the firm to have a competitive edge. The application of the human resource function in multinational companies becomes controversial due to the need to formulate human resource guidelines and structures. The dissimilarity among the nations where branch is located complicates the process of hiring both local and expatriate employees (Baruch 2002, p. 239). This paper will discuss the factors that a human resource director should consider while setting wages for local and expatriate employees working in a multinational corporation. Evaluation of factors to be considered in setting the wages for British expatriate managers and engineers Many Multinational Companies desire to send their current employees to work in a d ifferent nation for a number of factors. First, the citizens in the new nation may not have the knowledge and expertise required in the job. In addition, the expatriate, being a present employee of the organization, has vast skills of the company for organizing all the company’s businesses in the new branch with the mother company (Thite 2009, p. 269). Thirdly, it helps offer the supervisors and senior management with the image needed to be a key decision maker in this global economy. As a human resource director, determining the wages to be paid to expatriates is not an easy task as it incorporates many factors to be considered (Baruch (2002, p. 240). As Caligiuri (2007, p. 294) notes, the calculation of the wages of any expatriate need a careful thought of many factors before one arrives at a wage structure that incorporates all factors. As the human resource of this British Multinational, I will distinguish between the internal and external influences of these wage determi nation strategies. The internal determinants include the rank of employee in the organization, the stage of the family development and the labour category of the employee. Regarding the first factor, I will develop expatriates wages with regard to their ranks in the organization. For instance, I would set different wages for senior managers, middle-level managers and supervisors. Secondly, I would develop a good strategy to categorise wages based on the marital status of the expatriate. I would also consider the nationality of the employee in developing different remuneration structures. The background of the expatriate will also be a significant factor in setting the wages; it would help me come up with the appropriate wage structures. I would highly insist that the young and new expatriates be remunerated like employees of the host country. The highly skilled and experienced expatriates can be remunerated with add-ons, adjustments and incentives, as well as bonuses to their wages. The characteristics of the work assigned can also be the foundation for the wage setting. On this regard, those given complex tasks should earn higher wages than those whose duties are not complex (Friedman 2009, p. 252). The social factors are also remarkable in influencing the wages to be paid to expatriates; these include the society and present discussion structures, for instance, state or industry-broad, local or company. The latter can often tremendously affect the degree of pay diversity and distinct kinds of remuneration and appraisal are satisfactory. Regarding expatriate remuneration, the origin of the company is not likely to have an impact on the wage calculation (Van Der Heijden, 2009 p. 831). Globalization makes