Fact: When International Management was polled, 80% listed “discrepancies” between their compensation packages as their biggest personal HR problem.

Fact: When Human Resource Management was polled, over 50% felt the compensation discrepancies among their different pools of international management employees were a very significant Human Resource problem.

There is no mystery to eliminating these “discrepancies”. There is a need for a consistent strategy that permeates your international compensation program. However, to quote Emerson, “A foolish consistency is the hobgoblin of little minds…” Success is having the wisdom to be able to distinguish between the two.

The “discrepancies” that were cited as the most primary existed within international management both horizontally and vertically. Horizontally across Expatriate, TCN and Local National lines. Vertically between Executive, Middle Management and Supervisory levels.

You find things like an Expatriate Country Manager in Columbia receiving a hardship allowance while his or her French counterpart in Peru does not. You find 85% of Expatriate Executives, Managers and Supervisors receive Tax Equalization while only 30% of TCN Executives and Managers get the same and no TCN Supervisors received the benefit.

The “discrepancies” most cited are listed in the order of how often they were mentioned as being major problems:

• Base Salary
• Overseas Premiums
• Housing Allowances
• Education Allowances
• Cost of Living Allowances
• Tax Equalization
• Repatriation Allowances
• Performance Based Incentives



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