Discussion 4 with two replies

DQ4

by Isel Castillo - Thursday, 10 February 2022, 10:06 PM

 

              It is crucial for multinational companies to develop compensation and benefits policies to ensure employees a stable and fair income and to motivate them to continue to stay in the same company increasing their skills while staying loyal to the company. Bonuses and yearly pay boosts aid the company to retain employees and to have better opportunities and pay than others. At times companies increase worker pay, to engage employees and to somewhat convince them to stay in the company. If employees have benefits, they know that they are able to take off days that they need without harming their pay. Thus, it is crucial for MNC to also compensate based on experience, growth, and time that employees have stayed. The longer employees stay in a company, the more benefits they are able to acquire such as higher positions, higher salaries, more paid days-off, and even bonuses for staying a certain amount of time within the company. In addition employees feel welcomed and appreciated when their work is noticed; furthermore, they work extra hours and put in more effort when they see personal growth and recognition from their supervisors and managers. 

                    Researchers emphasize the economic perspective of value in Return on Investment (ROI) for expatriates because it intertwines with financial and non-financial losses and gains; moreover, these values boost the accuracy and efficiency of the calculation meaning that leading standards of value such as building global leadership artistry and implementing new corporate structures in subsidiary offices are interconnected in ROI. Once these leadership values are built in the beginning, and in the middle of the expatriate’s assignment, performance results are simpler to be predicted and controlled. MNC are able to not only maintain expatriates for a longer period of time with fair compensations and policies that protect them and ensure secure employment, but to experience return on investment with expatriate employees who become leaders, entrepreneurs, and have deeper knowledge about their field and the host country they resided in (McNulty and Tharenou, 2004).

                  When MNC are able to compensate employees through fair processes and outcomes, employees feel safe and noticed at work. It is important for companies to consider all of their employees and what they can bring to the table. Even when it comes to the janitorial team, multinational companies know that it is important to keep members who take their job seriously and who give their best because if employees are mistreated they can file complaints against the company and also lose employees instead of retaining them. Vacancies damage the team as a whole since team members have to cover for other employees and not having fair processes and outcomes, changes the atmosphere of the company to a place where employees do not wish to work at. 

           Overall, fair processes and outcomes allow employees to feel respected and taken into account because they know that the company is not only a place to work to make a living, but a place that cares about their needs and compensates them fairly for their hard work and commitment to the company. Managers and company owners ought to make wise decisions to know how to grasp the interest of their employees and by providing bonuses, paid vacations, an economic insurance, and incentives, they are able to retain employees. 

McNulty, Y. M., & Tharenou, P. (2004). Expatriate Return on Investment. International Studies of Management & Organization, 34(3), 68–95. https://doi.org/10.1080/00208825.2004.11043710

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