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Discussion #1
Cite three ways that global HR differs from domestic HR, specifically in relation to Total Rewards. Give examples, and cite at least one source from the class. Respond to at least one colleague.
Global HR differs from domestic HR, specifically concerning Total Rewards. Three examples are:
Currency Management -
Currency management is important in global Total Rewards programs. Global HR will need to account for fluctuations and exchange rates on the monetary compensation offered to individuals. Monetary compensation (pay) is an important part
of the total rewards. Employees in different countries can receive salaries and benefits in different currencies. To ensure
fair and consistent total rewards across the organization, it is important to adapt to fluctuations/ exchange rate of the currency. Large fluctuations can result in changes in the value
of rewards given to employees located in different areas.
- Compliance of Laws -
Labor laws and regulations will differ in other countries, It is important that Global HR managers know and understand the differences. Compliance with legal requirements will shape what the Total Rewards program offers employees. Mandatory
benefits such as healthcare and pension contributions are required by law in other places. Other countries have different
laws; Some examples are safety laws, vacation time, work hours, and disability (University of Minnesota, 2016). Global HR needs to know and offer the differences in the Total Rewards programs. By adapting the Total Rewards programs the needs of employees are met and the company is in compliance with the laws in different countries.
- Cultural Differences / Preferences -
Cultural differences significantly influence how employees perceive and value the Total Rewards offered. Global HR needs to tailor Total Rewards to align with diverse cultural expectations (WorldatWork, 2020). Some cultures have different values, in turn, employees will seek various benefits than employees of the home nation. Examples of some preferences that can be highly valued are recognition and work-life balance.
The Total Rewards programs should reflect employees' cultural preferences and values in different areas. Impactful areas for global HR would be currency management, compliance with local laws, and consideration of cultural differences.
References:
University of Minnesota. (2016, March 22).
14.3 international HRM considerations – Human resource management
.
https://open.lib.umn.edu/humanresourcemanagement/
chapter/14-3-international-hrm-considerations/
WorldatWork, & Dan Cafaro. (2020).
The WorldatWork handbook of total rewards : A comprehensive guide to compensation, benefits, HR & employee engagement
. Wiley
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