Post on 09-Jan-2017
ASSIGNMENT
Compensation Programme For Expatriates In
Microsoft.
FROM: Danish Showkat
R.no. 14036113030
MBA 4th Sem
Submitted To Owais Sir
Compensation Programme For Expatriates In
Microsoft.
Definition Of Expatriate:- An expatriate is an individual living in a country other than their country of
citizenship, often temporarily and for work reasons. If your employer sends you from
your job in its New York office to work for an extended period in its London office,
once you are in London, you would be considered an expatriate or “expat”.
Benefits given to Expatriates in Microsoft:-
1. Monetary Factors related to Base salary:-
Base Salary
Comparable to home country.
Serves as a reference point for establishing additional benefits.
Greatest point of flexibility.
Choose Method
Home country-based
Host country-based
Headquarter-based
2. Monetary Factors related to Premium:-
Assignment Premium
Incentive: persuade acceptance of international assignments.
Environmental or hardship premiums.
Mobility premiums.
3. Monetary Factors related to tax:-
Tax Considerations
Tax burden depends on location of assignment.
Solution: Tax Equalization
i Simple and easily understood.
ii Benefits both employee and employer.
iii Employee will not receive the tax burden.
iv May be high cost to Employer.
4. Monetary Factors related to Payroll:-
Payroll
Not placed on foreign location’s payroll.
May accrue Social Security benefits.
Consider exchange rates and inflation.
5. Non-Monetary Factors related to Family:-
Family Considerations
Assimilation programs.
i Support programs.
ii Call centres.
iii Language programs.
iv Cultural awareness.
6. Non-Monetary Factors related to Medical:-
Medical Coverage
27% of expatriates are dis-satisfied.
Employers provide full coverage.
7. Non-Monetary Factors related to Accommodation:-
Housing
Housing and utilities allowance.
Goods and services allowance.
Expatriates discouraged from selling their American home.
American communities in foreign lands.
8. Non-Monetary Factors related to Standards:-
Education
Match American standards.
Tuition reimbursement.
9. Non-Monetary Factors related to Holidays:-
Day’s Off
Travel Expenses
i Children.
ii Employees.
Rest and Recreation days.
10. Non-Monetary Factors related to Repatriation:
Repatriation
Employees forfeit “special” compensation.
Re-assimilation problems.
i Difficult to collaborate.
ii Resentment.
Solutions.
i Re-assimilation courses offered.
ii Promotion offered.
iii Career development programs.
iv Capitalize on foreign experiences.