Week 4 Project

Pay, Benefits, and Employment Outside of the United States

Globalization has created the opportunity for US employers to partner with other businesses and countries. The move from traditional manufacturing to knowledge- and service-based employment also means that jobs and markets are more likely to be dispersed geographically. As the need for employers to interact globally increases, the HR professionals are going to have increased opportunities to develop compensation and bene�ts programs for US employees in foreign assignments and for indigenous employees in foreign of�ces of the parent company.

Even though this list may not be all inclusive, there are few countries to consider: Brazil, Germany, India, Canada, China, and Mexico. Now, let us take a moment to review a relocation decision of a well- known company.

Many years ago, Hershey’s made a decision to close their manufacturing plant in Oakdale, California, and relocate it to Mexico. In this small town, a chocolate festival was held every year. The employees were displaced, and the patrons of the chocolate festival were also disappointed.

The History of Hershey’s Review each year to learn more.

1894

1900

1903–1905

1906

1907

1909

Scenario:

You are an HR professional for an organization. You are tasked with layoffs and must design a pay and bene�ts system for new employees in another country. Consider the following questions in order to understand your role as the HR professional:

How would you begin to establish the policies and procedures for employees in the manufacturing plant in Mexico? 

How would you investigate their wages and salary structures? 

How much paid-time off should employees receive?

How does the economic elements factor into the pay and bene�ts structure outside the United States?

Additional Materials

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

Pay and Bene�ts Outside the United States

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

Labor Aspects in North America Free Trade Agreement (NAFTA) Renegotiation (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=127587769&site=eds-live)

Host Country National's Reactions to Expatriate Pay Policies: Making a Case for a Cultural Alignment Pay Model (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp? sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx? direct=true&db=eue&AN=57657974&site=eds-live)





1926

1929–1939

1945