Critically analyse the existing reward management polices used by the organisation in the Host country and how it differs from the parent country practices.
Assignment Brief
Examine the existing reward management polices used by the organization in the Host country and how it fluctuates from the parent country practices. Identify and calculate the future issues which may arise in managing staff in the Host country terminus, providing specific recommendations to challenge those issues would have to be presented in the table format from example, the escalating gender pay gap and other national cultural issues that fight with values of the organization.
As a Global Compensation and Benefits Manager of an International Organisation, you have been asked to provide a report to the executive board reading current reward strategy and policy (you may choose your organisation and industry for this assignment but ensure that it is agreed with the Tutor) You have been specifically asked to
Identify and evaluate the future issues which may arise in managing staff in the Host country destination, providing specific recommendations to tackle those issues would have to be presented in the table format from example, the escalating gender pay gap and other national cultural issues that conflict with values of the organisation.
Sample Answer
Report to Executive Board: GlobalTech Inc. – Reward Strategy Analysis (UK vs India)
Prepared by: Global Compensation & Benefits Manager
Organisation: GlobalTech Inc.
Host Country: India
Parent Country: UK
1. Analysis of Current Reward Policies
UK (Parent Country)
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Total Rewards Mix: Competitive base salary, performance-related bonuses, stock options.
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Benefits: Generous pensions (auto-enrollment), private healthcare, flexible working.
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Pay Transparency & Equity: Regular internal reviews; strong compliance with gender pay gap regulations.
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Performance Framework: Balanced Scorecard aligned with corporate priorities, annual performance reviews.
India (Host Country)
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Base Pay: Lower salaries relative to UK due to market norms; roles benchmarked locally.
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Variable Pay: Quarterly bonuses based on team and individual targets; no stock options.
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Benefits: Employer-funded health insurance, modest gratuity contributions; less flexibility in working hours.
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Transparency & Pay Equity: Less formalised, emerging pay gap concerns, cultural norms limit open disclosure.
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Performance Management: Numeric targets with feedback sessions; limited emphasis on personal development.
Key Differences
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Equity vs Local Norms: UK’s transparent pay approaches contrast with less formal practices in India.
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Rewards Structure: Indian staff lack long-term incentives (equity).
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Cultural Fit: Cultural values in India reduce likelihood of open salary discussions and flexible working.
2. Future Issues & Recommendations
| Issue | Explanation | Recommendation |
|---|---|---|
| Escalating Gender Pay Gap | Cultural norms in India often favour male employees, exacerbating pay disparity. | - Conduct gender pay audits in Indian operations. - Introduce pay bands that ensure equal starting compensation. - Develop mentoring programmes to support women in career progression. |
| Lack of Long-Term Incentives | Absence of stock options reduces retention of high-value talent. | - Introduce locally adjusted long-term incentives, such as phantom shares or deferred bonuses. - Communicate their value clearly to employees. |
| Limited Pay Transparency | Ambiguity in payroll can hurt morale and increase turnover. | - Launch internal pay bands and clear role-grading structures. - Provide manager training on discussing total rewards transparently, respecting local traditions. |
| Rigid Work Arrangements | Indian staff face challenges balancing local life demands without flexibility. | - Pilot flexible hours or remote working (e.g., half Fridays). - Align practices with UK global standards where possible. |
| Insufficient Skill Development | Focus on numeric targets overshadows learning and future-skills. | - Introduce L&D stipends and career development plans in India. - Track participation and tie it to progression. |
| Health & Wellbeing Differences | UK benefits far exceed those in India, risking employee satisfaction. | - Enhance wellness offerings (mental health counselling, gym subsidies). - Align health support programs with UK model. |
3. Summary & Next Steps
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Equity: Prioritise gender pay audits, transparent pay bands, and equal starting salaries.
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Engagement & Retention: Add long-term incentive schemes and flexible working options.
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Professional Growth: Enhance L&D initiatives to meet 21st-century skill needs.
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Wellbeing: Strengthen health and wellbeing benefits in line with parent-country standards.
Next Steps:
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Commission gender and pay audits in India (Q3).
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Design and pilot a phantom equity plan (Q4).
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Trial flexible working in select locations (Q1 next year).
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Upgrade health and wellness programmes (Q2 next year).
Continued...
