overseas compensation and benefits

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Compensation and benefits are two aspects of work that must be well defined by a company both geographically and globally, with each environment presenting its own set of problems and opportunities in these areas. The collection of issues that the company must adhere to when opening an office abroad is addressed in the following section.

Gender equality regulation is relevant for business because issues such as female empowerment have been accomplished to differing degrees around the world. In some countries, such as Saudi Arabia there is a gender pay gap that could be condoned while in the other countries such as those in the European Union, it is an offense to discriminate between the sexes when paying out or formulating compensation schemes. Regard for religious and holidays and associated packages is important. Various countries have different regards for national and religious holidays. For example, the U.S.A does not have mandatory paid public holidays while countries such as Sweden do. Finally, the local business and origination cultures in the area must be well researched. This is a significant area as it determines to a large extent whether the business shall fit within the foreign market or not. For example, In Islamic nations, the month of Ramadhan is associated with a bonus for every employee as part of the business culture and thus the business must observe this as well (Biswas, 2015).


Compensation benefits around the world can vary wildly and the business must conduct ample research to determine its place in a new market and how well it fits therein. Such factors as regulations, local policies, organization culture and gender equity must be factored in the research so that the business stays in synch with the operations of the new area.


Biswas, B. D. (2015). Compensation and benefit design: Applying finance and accounting principles to global human resource management systems (1st ed.). Upper Saddle River: Pearson FT Press.

December 21, 2022

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