ABSTRACT

Globalization is increasing the mobility of the labour force and has led to an increase in the number of multinational corporations (MNCs). To maximize the effectiveness of their rewards programmes, businesses need to adapt. Traditionally, institutional norms and values across a country were consistent; as such, organizations could implement a basic incentive pay programme that would be beneficial in sorting and motivating its workforce. The mobility of the labour force has led to an increase in immigration and a workforce that brings a varied set of institutional values and norms. Similarly, as MNCs expand into multiple countries, the diversity of their workforce is likely to increase. This means organizations will need to adapt their rewards programmes to fit with a global workforce. This chapter highlights some of the national differences in incentive pay, discusses a research agenda for how to better understand the implications of a global workforce on incentive pay, and finishes by providing suggestions for how businesses can navigate incentive pay with a global workforce.