I do agree with the student on the need for organizations to take into consideration the benefits and compensation of employees in different countries across the globe before they expand their operation since this is also one of the crucial areas that determines its success in that foreign country. I agree with the student that each country has its own minimum wage. Why is the minimum wage so important? It is important to take into consideration of the minimum wage because certain countries cannot allow a firm to operate until its meets the prevailing minimum wage. For instance in the United States the minimum wage is at least $8.25 per hour and therefore all firms should adhere to that law (Noah Scheiber, 2015).
Secondly, the student was right to argue that organizations should also take into consideration on the benefits that employees are entitled to in different countries. In the United States, the law requires companies to give leave benefits to their employees especially during holidays or vacations, personal leave and sick leave. Healthcare is another important benefit that employees in every country are entitled to. Apart from those two benefits, there are also other benefits that organizations need to take into considerations for example in Britain firms are expected to give employees flexible working conditions, learning and development, staff and volunteer service, maternity and paternity leave. Therefore, any firm that wishes to operate in those two countries must adhere to those requirements (The guardian, 2015).
Why is it important for countries to have employees’ benefits and compensations? They help to motivate the employees to work harder and feel appreciate in their places of work (Ahmad et al., 2013). Having good working condition is a boost to the country since it will attract skilled labor force from the other countries and it will at the same time prevent its skilled labor force from leaving the country in search for better working condition.
References
Ahmad, R., Yei, E. T. P., & Bujan, S. (2013). Relationship between Types of Benefit (leave, loan and retirement plan) and Employees’ Retention.International Journal of Education Research, 1(8).
Noah Scheiber. (2015). Why a Meaningful Boost for Those at the Bottom Requires Help From the Top - The New York Times. Retrieved from http://www.nytimes.com/2015/07/07/upshot/why-a-meaningful-boost-for-those-at-the-bottom-requires-help-from-the-top.html?ref=topics&_r=0
The guardian. (2015). Benefits in Britain: separating the facts from the fiction | Politics | The Guardian. Retrieved from http://www.theguardian.com/politics/2013/apr/06/welfare-britain-facts-myths
