HM Kusman Februari 2011

Global compensation: Learning objectives After considering this chapter, the reader will be able to describe or explain: 1. The basic objectives of global compensation 2. The seven options available for design of a compensation system for expatriates 3. The most commonly used system for expatriate compensation: the balance sheet approach 4. The two major components of the balance sheet approach: incentives and adjustments 5. The major approaches to managing taxes 6. Major problem areas with managing compensation and taxes 7. Design of a global compensation system 8. A number of critical components of compensation and benefits for the global workforce Key terms 1. BaLANCE sheet approach, localization, lump sum 2. Cost of living allowance (COLA) 3. Stock options, employee ownership11 determination of individual and organizational pay and benefits on an international basis becomes extremely complicated because of considerations such as pay and benefits for international assignees, subsidiary workforces in multiple countries, employees from many different countries (such as inpatriates, HCNs, and TCNs), varying country approaches to and levels of pay and benefits, and problems such as dealing with multiple currencies, exchange rates, inflation rates, tax systems and rates, and differing standards and costs of living. Even though much space in this text has alreadyKusman: Compensation for International Business Organization 2

Dowling Festing - Engle1.2. 3. 4. 5.

Introduksi dari Dowling, Festing & Engle Tujuan Kompensasi Internasional Komponen kunci dari program kompensasi Internasional Pendekatan2 dlm kompensasi Internasional Kesimpulan: kompleksitas pola, tantangan dan pilihan

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Balance Sheet approach: Marketing manager negara Neweuphoria (Table 7-4)Employee Posisi Country Perubahan Date effectice Brian Smith Marketing manajer NewEuphoria Penempatan baru 1 february 2008 Jumlah A$ PA Base salary Cost of living allowance Overseas premium (20%) Hardship allowances (20%) Housing deduction (7%) Tax deduction TOTAL COLA Index = 150 (newEuphoria : australia)Kusman: Compensation for International Business Organization

Paid in Australian A$ PA 100000 40000 40000 -14000 -97000 69000

Paid in local Currency NE$ PA 150000 75000 225000 Exchange rate = 1.5

200.000 50000 40000 40000 -14000 -97000 219000

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Kerugian dan keuntungan BSAkeuntungan 1. Equity 1. Antara penugasan (assignments) 2. Antara expatriates sesama asal negara 1. Fasilitasi saat expatriates re-entry 1. Nudah mengkomunikasikan ke karyawan (dgn melihat skema) Kerugian Bisa menimbulkan perbedaan yang besar Antara expatriate berbeda asal negara (PCN & TCN)

Antara expatriates dan tenaga setempat (PCN/TCN vs HCN) Bisa sangat rumit dlm administrasinya

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Hal lain (informasi) yg perlu diperhatikan dlm balance sheet approachTaxation ada dua pendekatan yg biasa dipakai MNE Tax equalization dan Tax protection:1.

2.

3. 4.

Tax equalization: perusahaan menahan sejumlah uang pajak homecountry tax dari PCN, dan membayarkan semua tax di negara asal (home country). PALING BANYAK DIPAKAI MNE. Tax protection: karyawan membayar sejumlah uang untuk seluruh pajak yg akan diperhtungkan di home country. Dhl pekerja memiliki hak selisih pajak antara home country dan pajak di negara penempatan (yg lebih sedikit dibandingkan di negaranya). (Stuart) ad hoc (tiap karyawan ditangani secara berbeda tergantung dari kesepakatan pribadinya dgn perusahaan) (stuart) laissez-faire (karyawan secara individual dipersilahkan menangani tax-nya sendiri apakah di home atau di host country). Kedua tambahan dari Stuart tidak dibahas lebih lanjut oleh Dowling.

ASPEK PALING SULIT: MENGATUR BENEFIT INTERNASIONAL: disebabkan variablitas lintas negara ygdipengaruhi budaya dan kebiasaan, sehingga sulit distandisir. Ada berbagai pilihan (lima) sbbKusman: Compensation for International Business Organization6

Lima pilihan benefits policy internasionalAakah memberlakukan kebijakan di home country atau tidak, khususnya bila perush tdk menerima/mengurus tax deduction program 2. Apakah prsh punya kesempatan utk mengontrol program benefits di Host country dan/membuat kekhususan berbeda dlm coverage nya. 3. Apakah ada peraturan di negara Host atas pemberhentian pegawai (terminasi) yg menyangkut hak atas benefits 4. Apakah expatriate harus memperoleh social security benefits dari home country atau host country 5. Apakah benefits harus dipertahankan berbasis home atau host country, siapa yg bertanggng jwb?, apakah ada komponen benefits yg bisa dikomensasi bila ada penghilangan komponen lainnya, apakah program benefits di Host harus diekspor ke tenaga lokal di luar negeri. Ada tambahan kesulitan: apakah ada kewajiban yg biasa berbeda dalm porsi benefits wajib publik dan private pension scheme? Lihat tabel1.

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Masalah kompensasi bagi PCNs dan TCNs Banyak TCN yg memiliki pengalaman luas interasional

krn penempatan oleh MNE di berbagai negara yg berbeda. Membayar TCN berbasis home-country mereka bisa lebih murah dibandingkan dgn membayar semua ekspatriate berbasis PCN khususnya bila HQ MNE ada di AS ata German (tingkat harga yg tinggi). Jd sering MNE menggunakan home-country balance sheet approach kpd TCN, dan kesulitan dlm menyeimbangkan perbedaan pay bisa diimbangi dgn pembayaran yg lebih rendah. Dhi sejauh mana TCN itu berperan dan sangat penting bagi keberlangsungan MNE.Kusman: Compensation for International Business Organization8

Rangkuman model keseluruhanLEVEL Level 3: ArtefactKontek internal Industri/kompetisi size life cycle level internasionalisasi struktur organisasi Strategi SBU & SDM & Korporasi budaya korporasi hubungan kekaryawan (hubungan jangka pendek/panjang) Perspektif internal perush. Spt: pandangan berbasis sumber teori perilaku ekonomi institusi baru UNIVERSALITAS Pay context choice domain Partek dlm Global pay: (1) Pay mix (2) Pay level (3) standardisasi lawan lokalisasi( External context Kondisi Pasar lokal (pasar TK & produk) undang2 Faktor /kekuatan institusional (serikat buruh sistem edukasi) Norma budaya

Level 2: Norms & values

Strategi Pay = Basis for Pay (job vs skill kinerja vs senioritas kinerja individual/kelompok orientasi jngk pnjng/pndk risk aversion vs taking kinerja korporasi/divisi hirarhikal/egalitarian ukuran kinerja kualitatif/kuantitatif keadilan internal/eksternal

Level 1: Dasar

Perspektif eksternal perusahan spt: perspektif budaya perspektif institusional KONTEKSTUALITAS

Paradigma penelitian

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