Definition (1):
Global compensation can be defined as pay practices relating to employees who are working on assignments in international locations. A service premium and additional incentives are often included in the compensation package to offset differences in taxes and the cost of living.
Definition (2):
Global compensation is planned for giving equitable and competitive compensation that matches the company’s short and long-term strategies and attracts, retains, and motivates high-performing employees. Again, the team gives programs that help leaders to identify, reward, and reinforce sustained and excellent employee performance. It-
- Gives strategic direction to accomplish reorganizations, which can involve the legal risk analysis in partnership with the Board of Directors and related job evaluation and documentation processes.
- Performs benchmarking for ensuring external market competitiveness.
- Conducts job evaluations for ensuring appropriate leveling and internal equity depending on the competency framework.
- Discusses offered salaries for new recruitments, promotions, equity/market adjustments, temporary salary increases, and annual merit increases.
- Administers recognition and annual bonus programs.
Definition (3):
Global compensation and bonus programs are powerful tools to motivate and reward global teams. But a range of legal problems can be involved in paying employees across borders.