Review the following lectures:

• Expatriates
• Contingent Workers
• Compensation for the Expatriate
• Preparing the Expatriate for an International Assignment
• Repatriation for the Expatriate

Before beginning work on this discussion forum, please review the link “

Doing Discussion Questions Right

” and any specific instructions for this topic.

Before the end of the week, begin commenting on at least two of your classmates’ responses. You can ask technical questions or respond generally to the overall experience. Be objective, clear, and concise. Always use constructive language, even in criticism, to work toward the goal of positive progress. Submit your responses in the Discussion Area.

Content:

There are two discussion questions listed below. By the due date assigned, respond to one of the discussion questions and submit your response to the Discussion Area below, using the lessons and vocabulary found in the reading. Support your answers with examples and research and cite your sources using the APA format.

Question One:

Evaluate an article on the Internet to explain the union’s perspective on contingent workers.

Question Two:

Evaluate an article on expatriates on the Internet.

Start reviewing and responding to at least two of your classmates’ postings as early in the week as possible. Participate in the discussion by asking a question, providing a statement of clarification, providing a point of view with a rationale, challenging an aspect of the discussion, or indicating a relationship between one or more lines of reasoning in the discussion.

Compensation Human Resources

Expatriates

How would you feel about working in another country? The thought of traveling seems fascinating
and daunting at the same time. There are hundreds of expatriates traveling to various countries. The
thought of seeing new landscapes, being in tropical desert climates, and experiencing another culture
can be wonderful. As wonderful as it may seem, there are certain regulations, policies, governmental
guidelines, and customs that must be followed. For example, Dubai is very alluring with beautiful
hotels, monumental skyscrapers, and tropical climate. With all of the allure and state-of-the-art
facilities, this country has been built on certain social customs and restrictions due to its location.
There are numerous countries where an employer may send an expatriate. The HR professional must
have extensive knowledge of certain protocols in order to acclimate expatriates to another country.
Such areas of concern should be allowing the expatriates or their family members to visit the country
prior to relocation, �nding suitable housing, investigating the educational system for children,
immersing the expatriates and their family members in the language of the country, and so on. The
HR professional must be cognizant of the political climate and any terrorist activity. Working abroad
can be very exciting for an expatriate, but it is the responsibility of the HR professional to establish
sound policies and international compensation programs to assist the expatriate with the transition.

Pros and Cons of Moving to Dubai

Pros Cons

Open to other religions Must recognize Ramadan and the �ve-
time daily call to prayer.

New high-rise apartments Rent must be paid in full and up front
for one year.

Realtors may be dif�cult to work with.

An agent is required when signing the
lease.

Sporadic maintenance and lack of fees
paid by owners may prevent
expatriates from using some of the
amenities.

There are a few questions to consider:

What is the competitive advantage, and how do international activities �t in?

What type of cross-cultural training should an expatriate receive?

What factors must the HR professional consider before designing an international
compensation program for an expatriate?

Why is the balance sheet for the US expatriate’s compensation package so important?

Why is repatriation important to an expatriate?

Pros Cons

English is spoken Even though English is spoken, it can be
very dif�cult to open a bank account, set
up basic utilities, mobile phone, or obtain
a visa since the formal documentation
may be in Arabic.

Good public transportation Beware of driving in Dubai.

Additional Materials

From your course textbook, Strategic Compensation: A Human Resource Management Approach,
read the following chapter:

Compensating Expatriates

From the South University Online Library, read the following articles:

Compensation Issues Relating to Expatriate Managers: A Review of Related Literature
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?
direct=true&db=a9h&AN=116350598&site=eds-live)

Lessons from Fred Bailey’s Expatriate Experience in Japan: Proactively Preparing Employees
for International Assignments
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?
direct=true&db=a9h&AN=66961080&site=eds-live)

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Contingent Workers

Business necessities and employee work preferences have created a work environment �lled with more contingent workers than in the past. With each
generation, a new need arises. In previous years, employees were content with a forty-hour week, working for an employer for many decades and then
retiring by the age of sixty-seven. Now, employees are seeking �exible hours, and work-life balance has become an important factor in their lives. The HR
professional must be cognizant of the de�nition of a contingent worker and the laws and bene�ts that apply to these employees. Contingent workers can
be classi�ed as part-time employees, temporary employees, independent contractors, consultants, freelancers, or employees with a leased-employee
arrangement. A part-time employee works less than thirty-�ve hours per week. A temporary employee is contracted mainly through a temporary
employment agency. An independent contractor, consultant, or freelancer is not considered an employee. Lastly, the individual with the lease-employee
agreement is hired through leased companies. With the contingent workers de�ned, it is now time to turn to the laws and determine how the HR
professional will ascertain what constitutes an employee. The �rst thing the HR professional could do is use the Common-Law test (guidelines can be found
under the Internal Revenue Service [IRS] website). The HR professional can also use the economic realities test. There are several state and federal
regulations that apply to the contingent worker. The contingent worker is entitled to limited bene�ts. After reviewing the chapter for this unit, consider the
following:

What are the pros and cons of having a contingent workforce? 

What percentage of employees should be contingent workers within an organization? 

Why are unions opposed to companies having a contingent workforce?

Contingent Workforce

What Is Contingent Workforce?

From the South University Online library, read the following case study:

Creating a New Contingent Culture   (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?

sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?direct=true&db=ent&AN=79057851&site=eds-

live)

Part-time employees

Temporary and on-call employees

Leased employee arrangements

Independent contractors, freelancers, and consultants

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Additional Materials

From your course textbook, Strategic Compensation: A Human Resource Management Approach, read the following chapter:

Compensating the Flexible Workforce: Contingent Employees and Flexible Work Schedules

From the South University Library, read the following articles:

Lower Cost or Just Lower Value? Modeling the Organizational Costs and Bene�ts of Contingent Work
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http%3a%2f%2fsearch.ebscohost.com.southuniversity.libproxy.edmc.edu%2�ogin.aspx%3fdirect%3dtrue&db=bth&AN=123754829&si
live)

Without Proper Planning, Contingent Workers Pose Serious Legal Risks to Employer Bene�t Plans
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http%3a%2f%2fsearch.ebscohost.com.southuniversity.libproxy.edmc.edu%2�ogin.aspx%3fdirect%3dtrue&db=p6h&AN=61999016&sit
live)

The Contingent Workforce: A Challenge for Bene�ts Managers (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http%3a%2f%2fsearch.ebscohost.com.southuniversity.libproxy.edmc.edu%2�ogin.aspx%3fdirect%3dtrue&db=bth&AN=15537950&site

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live)

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Compensation for the Expatriate

According to Martocchio (2017):

The development and implementation of international compensation programs typically pose
four challenges to companies that U.S. compensation programs do not have to consider. First,
successful international compensation programs further corporate interests abroad and
encourage employees to take foreign assignments. Second, well-designed compensation
programs minimize �nancial risk to employees and make their and their families’ experiences
as pleasant as possible. Third, international compensation programs promote a smooth
transition back to life in the United States upon completion of the international assignment.
Fourth, sound international compensation programs promote U.S. businesses’ lowest-cost and
differentiation strategies in foreign markets. U.S. companies must determine the method for
setting expatriates’ base pay. Final determination should come only after companies carefully
weigh the strengths and limitations of alternative methods. In addition, the purchasing power
of base pay is an important consideration. Purchasing power affects the standard of living. (pp.
308–310)

The Expatriate’s base pay compensation package consists of the core compensation, employee
bene�ts, and enhanced bene�ts.

Methods for Setting Base Pay

Components of Expatriate Compensation
Review each tab to learn more.

U.S. companies must determine the method for setting expatriates’ base pay and the
purchasing power of the base pay.

U.S. companies use one of three methods to calculate expatriates’ base pay

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Home country-based method

Financial Exercise:

An expatriate has been assigned to Japan. His gross salary is $60,000 (lives in Houston, TX). He has
provided a comfortable lifestyle for a family of four. Will he be able to offer the family a comparable
lifestyle with the same income?

Evaluate the currency exchange rate.

Evaluate the housing costs.

Determine the monthly expenses for groceries.

Analyze the transportation expenses.

Determine the childcare expenses for two children.

Assess the cost of a mobile family plan and the Internet.

Calculate miscellaneous expenses.

Foreign service premiums, hardship allowances, and mobility premiums may offset expenses for the
expatriate. Be sure that the expatriate does not experience a �nancial risk.

Reference:

Martocchio, J. J. (2017). Strategic compensation: A human resource management approach (9th
ed.). [Vital Source digital version]. New York, NY: Pearson Education, Inc.

Core Compensation

Employee Bene�ts

Enhanced Bene�ts

Example: The home country-based pay method compensates expatriates the amount
they would receive if they were performing similar work in the United States.

Host country-based method

Example: The host country-based method compensates expatriates based on the host
countries’ pay scales.

Headquarters-based method

Example: The headquarters-based method compensates all employees according to
the pay scales used at the headquarters.

(Martocchio, 2017, pp. 310–311)

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Additional Materials

From your course textbook, Strategic Compensation: A Human Resource Management Approach,
read the following chapter:

Compensating the Expatriate

From the South University Online Library, read the following article:

A New Practical Guide for Determining Expatriate Compensation: The Comprehensive Model
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?

sch=suo&turl=http://search.ebscohost.com/login.aspx?
direct=true&db=ofm&AN=525409352&site=eds-live)

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Preparing the Expatriate for an International Assignment

When an organization decides to send an employee or a team on an international assignment,
preparation on behalf of an  HR professional is important. Think of it this way, does the military
deploy the Navy Seals, the 75th Ranger Regiment, Delta Force, Marine Special Operations
Command, Air Force Special Tactics, or any other special unit to a foreign country without a well-
documented plan? What would happen if the military is ill-prepared for a mission? Imagine for a
moment, a team has landed in a  designated country, but someone forgot to supply food and water for
the mission, failed to check the fuel for the plane, or sent the team to the Arctic without appropriate
uniforms and gear. What would eventually happen to the team after thirty days, sixty days, ninety
days, six months, or a year? By the way, you cannot deliver these items to the team since the drop
zone is being guarded by the enemy. You are the leader of your team and to send anyone from the
group on a mission without a plan will eventually have negative consequences. How does the HR
professional prepare the expatriate for the new international assignment in the host country?

Ensure the expatriate is �uent in the language of the host country.

Connect the expatriate with someone who is familiar with the country.

Be certain this individual or team will be able to adapt to the new country.

Develop a plan to stay in constant communication with the expatriate.

This list is not all-inclusive. Preparation is extensive and will take much research on your part.
Remember, as the HR professional, you are responsible for this individual or team assigned to work in
another country.

Why Do International Assignments Fail?

Reasons

Job and work environment 

Family factors

Organizational support 

From the South University Online Library, read the following:

Why Do International Assignments Fail? 

(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?

sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?

direct=true&db=bth&AN=99130334&site=eds-live)

Cultural adjustments

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Additional Materials

From your course textbook, Strategic Compensation: A Human Resource Management Approach,
read the following chapter:

Compensating the Expatriate

From the South University Online Library, read the following articles:

Is an International Assignment Right for You? 
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http://search.ebscohost.com/login.aspx?
direct=true&db=ofm&AN=101692473&site=eds-live)

Lessons Learned from Implementing an Intercultural Communication Training Program for Pre-
Departure Expatriates 
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http://search.ebscohost.com/login.aspx?
direct=true&db=eric&AN=EJ1148969&site=eds-live)

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Repatriation for the Expatriate

According to Martocchio (2017):

“Repatriation is the process of making the transition from an international assignment and
living abroad to a domestic assignment and living in the home country. Special compensation
considerations should not end with the completion of international assignments. Effective
expatriate compensation programs promote employees’ integration into their companies’
domestic workforces. Returnees may initially view their domestic assignments as punishment
because their total compensation decreases. Upon return, former expatriates forfeit special
pay incentives and extended leave allowances. Although most former expatriates understand
the purpose of these incentives and allowances, it often takes time for them to adjust to
“normal” compensation practices. Many expatriates may not adjust very well to compensation-
as-usual because they feel their international experiences have made them substantially more
valuable to their employers. Their heightened sense of value may intensify when former
expatriates compare themselves with colleagues who have never taken international
assignments. Two consequences are likely. First, former expatriates may �nd it dif�cult to work
collaboratively with colleagues, which can undermine differentiation objectives. Second,
strong resentments may lead former expatriates to �nd employment with competitors. Adding
insult to injury, competitors stand to bene�t from former expatriates’ international
experiences. Companies can actively prevent many of these problems by the following two
measures. First, companies should invest in former expatriates’ career development. Career
development programs signal that companies value returnees. In addition, former expatriates
may view their employers’ investments in career development as a form of compensation,
reducing the equity problems described earlier. Second, companies should capitalize on
expatriates’ experiences to gain a better understanding of foreign business environments. In
addition, former expatriates can contribute to the quality of future international assignments
by conveying what did and did not work well during their assignments.” (pp. 308-320)

Maintain constant communication with the expatriate

Repatriation: Problems and Solutions
Review each tab to learn more.

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Reference:

Martocchio, J. J. (2017). Strategic compensation: A human resource management approach (9th
ed.). [Vital Source digital version]. New York, NY: Pearson Education, Inc.

Schedule a debrie�ng with the expatriate

Repatriation policy

Solution: This will help keep the expatriate abreast of internal changes at the home country site.

Example:

Schedule team meetings via Skype.

Include the expatriate in business decisions made at the corporate of�ce (home country).

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Additional Materials

From your course textbook, Strategic Compensation: A Human Resource Management Approach,
read the following chapter:

Compensating the Expatriate

From the South University Online Library, read the following:

Repatriation after Global Assignments: Current HR Practices and Suggestions for Ensuring
Successful Repatriation
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?

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