Compensation and Benefits for US Expatriate

Introduction

Java Corp is a cold coffee and tea beverage company with headquarters in the United States. The company has opened a new branch in London, England, and is sourcing a suitable candidate to fill the position of branch manager in the new location. The new hire will be selected internally or recruited from outside the company as long as they meet the criteria set by the company’s human resources department (Mane, & Arora, 2018). The successful candidate will be entitled to a competitive package in comparison to employees holding similar capacities in the industry.

Factors influencing base pay

            The key factors to consider in developing the pay for the employees will include the experience of the employee in a similar capacity, the qualification of the employee, and if the suitable candidate is engaged in any meaningful employment. If the employee is having an experience that surpasses 5 years they will be treated as senior executives. Those with less than 3 years will start with base pay allotted for junior managers. Moreover, the base pay will be determined by whether the suitable candidate has worked in similar countries in Europe with preference being given to those working in England. Such candidates will be well placed to hit the ground running since they easily understand the culture of the patrons who are likely to be visiting the restaurants (Mane, & Arora, 2018). The base salary for employees poached from competitors will be more than if selected internally since they bring new exposure and business intelligence. Suitable candidates who are in active employment at recruitment time will attract higher pay than those outside the employment. Candidates in active employment attract higher pay due to the need to make the offer more attractive than with their current employer. Moreover, the employees engaged in active employment in a similar position will require less training or induction for them to start giving results in the company.

Analyze pay considerations specific to expatriate positions

            The expatriate considerations pay will have relocation allowances, one month of paid leave in their home country or destination chosen by them, the company will support them with fully paid accommodation for the first three months and provide free transport to and from work. Further, the expatriate will be given an air ticket to work as they come to join the company. For those married, the company seeks to give them air tickets to relocate with their families and support the education of their children in the institution agreed with the employer during their induction period (Adams, Srivastava, Herriot, & Patterson, 2013). The suitable employees will be compensated for currency fluctuations that may occur due to the change in the employer. As such, to cushion the company, the recruits’ salary will be computed in US dollars or sterling pounds to ensure stability in their income. The employee will benefit from a foreign premium of 10% of the basic pay. The employee will be enlisted in a golf club of his choice among the three within London that company was selected for senior executives.

Legal Benefits for Employees

The legal benefits for the successful candidates will include performance-related bonuses, annual leave, medical leave, and cost of living adjustment allowance. The performance-based bonuses will be related to the suitable candidate attaining a certain level of performance in their duty stations. Thus, graduated percentage bonuses will be computed using basic pay. The successful candidate will be entitled to an annual leave of 30 working days that can be taken in phases of days, weeks, or the whole month with prior notice (Vance, & Ensher, 2002). The employee will be entitled to annual leave after one year since being confirmed. The candidate will be entitled to medical cover for self and dependents including wife, children below 21 years, and parents. The cover will take care of both in-patient and outpatient needs of the employee in the best medical facilities within the United Kingdom. The medical cover will entail co-payment with the employer paying part of the payment with the top-up deducted from employee pay. The employee will be entitled to cost of living adjustment as they relocate from their current duty station to England.

The employee is entitled to sick leave, paternity, and maternity leave. There exist a difference in maternity leave between England and US in that in England one is entitled to unpaid maternity leave of 14 weeks while in the US the leave is 12 weeks. Moreover, most workers in the US prefer cash benefits whereas in England, they prefer non-monetary benefits. As Java Corp continues opening more branches in the United States, the level of legal benefits will change drastically as more employees get roped in (Zhong, Zhu, & Zhang, 2021). The company will enlist 401(k) services to enhance the medical scheme. The employee will benefit from child welfare benefits with an arrangement with available child welfare organizations. However, as the organization grows on-site child welfare facilities will be put up for employees. The employees will be given compensation for home development as a reimbursement. The benefits seek to empower employees to buy homes and move from rentals.

References

Adams, J. W., Srivastava, A., Herriot, P., & Patterson, F. (2013). Careerist orientation and organizational citizenship behavior in expatriates and non-expatriates. Journal of Career Development, 40(6), 469-489.

Mane, P., & Arora, C. (2018). Challenges of expatriate management with special reference to compensation. Journal of Commerce and Management Thought, 9(3), 377-386.

Vance, C. M., & Ensher, E. A. (2002). The voice of the host country workforce: A key source for improving the effectiveness of expatriate training and performance. International Journal of Intercultural Relations, 26(4), 447-461.

Zhong, Y., Zhu, J. C., & Zhang, M. M. (2021). Expatriate management of emerging market multinational enterprises: A multiple case study approach. Journal of Risk and Financial Management, 14(6), 252.