Question

In a short paragraph, briefly summarize three critical issues associated with compensation in a global environment. Please be specific.

Answer 1

Some of the challenges appear with compensation in global environment, such as, the great deal of issues arises due to the different currencies, organizations, work time zone, languages and reward policies to support the compensation structure and to remain consistent and compliant; a good balance among the local and global benefits (e.g. labor contracts and flexible compensation practices) in terms compliance with country payroll reporting and regulations mostly by tax and revenue authorities; effective global processes and controls to support the compensation structure and system and meeting the timelines in a global environment; and optimal allocation of the organizational budget for various regions ,functions and business units.