Discuss the strengths and weaknesses of the following methods for establishing base pay in international contexts: home country-based pay, headquarters-based pay, and host country-based pay.
Home country-based pay compensates expatriates the amount they would receive if they were performing similar work in the U.S. Headquarters-based pay compensates expatriates based on the host countries’ pay scales. Companies use various standards for determining base pay which includes market pricing, job evaluation techniques, and past work experiences. This is beneficial when the assignment is long-term. Host country-based pay compensates employees according to the pay scales used at headquarters. The home country or international work assignment does not influence the base pay.
Designing Global Compensation Systems. (2017, April 3). SHRM. Retrieved May 1, 2022, from https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/designingglobalcompensation.aspx