Analyzing and Managing Expatriates Essay

Open, View, and/or
Download this Document

Total Length: 609 words ( 2 double-spaced pages)

Total Sources: 2

Page 1 of 2

Managing Expatriates

Chief Executive Officer (CEO)

Dear Sir/Madam,

A comprehensive international compensation package ought to take into account all elements in order to ensure that there is employee satisfaction. The system of compensation that is proposed for the 10 expatriates is the combination of the build-up approach and the cost of living allowance (COLA) approach. The buildup salary method employs the prevailing home salary as the base for calculating the expatriate package. The latter approach employs the principle of maintaining the home salary of the expatriate and reimbursing an extra separate allowance, largely for cost of living, but also for hardship centered on the dissimilarities for home locality and the host locality (Auzini and Tjakraatmadja, 2012). The compensation package that the employees will receive will also encompass benefits. Benefits and compensation is vital for delineating a remarkable package that is appealing to decline partaking in the assignment in Mexico. The benefits will encompass the initial coverage from health to the expatriates' time off, for instance personal time-off incentive (PTO), whereas, the expatriates' compensation will be more compensatory to encompass monetary costs or additional spending.

The proposed formula is as follows:

TC = BS + COLA + HA + AC + TA + EC

In this case, TC is the total compensation that the expatriate will receive.

Stuck Writing Your "Analyzing and Managing Expatriates" Essay?

View All Our Example Analyzing and Managing Expatriates Essay

Have A Custom Example Essay Written

Base Salary is given as $80,000. The Cost of Living Allowance (COLA) is included so as to sustain the purchasing power of the ten expatriates assigned to work in Mexico. According to Numbeo (2016), the cost of living in Mexico is 53.76% lower compared to the United States. Hardship Allowance (HA) is proposed to recompense for factors linked to challenging living conditions in the host nation, which is Mexico, environmental disorders which are quite dissimilar from the home nation and troublesomeness condition to personnel and families as a result of the assignment. In this case, the HA of the expatriates will be $10,000 annually (Auzini and Tjakraatmadja, 2012). Accommodation or housing allowance (AC) will be handed to the personnel based on the expense of renting a furnished housing establishment in Mexico in a good, safe and quality region. According to Numbeo (2016), the monthly pay rent is roughly $564, which makes it $6,768 annually. Transportation Allowance (TA) will be handed to the expatriates to reimburse costs linked with transportation expenses in Mexico. This allowance will be $25,000 annually for the expatriate to be given….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Analyzing And Managing Expatriates" (2016, March 08) Retrieved July 1, 2025, from
https://www.aceyourpaper.com/essays/analyzing-managing-expatriates-2160457

Latest MLA Format (8th edition)

Copy Reference
"Analyzing And Managing Expatriates" 08 March 2016. Web.1 July. 2025. <
https://www.aceyourpaper.com/essays/analyzing-managing-expatriates-2160457>

Latest Chicago Format (16th edition)

Copy Reference
"Analyzing And Managing Expatriates", 08 March 2016, Accessed.1 July. 2025,
https://www.aceyourpaper.com/essays/analyzing-managing-expatriates-2160457
   

Open, View, and/or
Download this Document
order custom essay example