ABSTRACT
This chapter examines several important and fundamental practices for managing compensation on a global scale. The chapter looks at key compensation considerations for major employee categories within the global workforce, including expatriates, host country nationals, and third country nationals (TCN). It provides useful information and practical guidelines to help direct and enlighten future decision makers regarding compensation and rewards for the global workforce. The practice of "pay for performance", or making at least part of an employee's compensation contingent on achieving individual, group, or organizational performance objectives, has such a critical link to Multi National Corporation (MNC) strategy that it merits special attention in this chapter. Important and fundamental practices for managing compensation on a global scale include managing global compensation strategically, considering performance-based pay where appropriate, anticipating the influence of local culture, using a total rewards system perspective, and addressing the duality challenge of global integration and localization.
