The Reward Management Toolkit

Tool 11International reward

Introduction

International reward management is the process of rewarding people in international or multinational organizations. It involves the worldwide management of rewards as well as managing the remuneration of expatriates.

In developing reward strategies for international firms it is necessary to decide on the extent to which a firm wants to achieve consistency of practice in accordance with group policy (convergence) or to allow an appropriate degree of freedom in local firms to develop reward policies and practices that fit their country’s characteristics and culture and are in line with local circumstances and culture (divergence). There is a tension between the desire to pursue a global good-practice policy ...