Effective International Compensation Package
The company will be opening its new foreign production plant in Mexico next year, and the deadline for the establishment is getting nearer. One of the requirements needed to be accomplished is the hiring of ten US-based employees, which will include some upper-level managers, in order to foresee the plant’s activities. Since the production plant is located far from the residence area of the employees, there will be difficulties in adjusting with the new working environment. In response to these disadvantages, I would like to propose a new international compensation package which will encourage and meet the needs of the employees. The package will make sure that the benefits received by the employees will be equal, if not greater, with the local employees considering the distance and the new environment.
Aside from the equivalent monthly salary of $80,000 for all the ten employees, the following benefits shall be included in the proposed international compensation package: Health Insurance. Health insurance will cover dental, eye, accident, disability, and death insurance, which will be immediately available in the needed times. Eye, dental, accident and disability will cover 75 percent of the total expenses, and; death insurance will be paid in full expenses with additional $50,000. Emergency (75 percent insurance) and evacuation (fully paid in case of pandemics and outbreak) shall be included as well. Since the employee will be separated from their family, the insurance will also cover their spouse, children and parents. This is to make sure that the employees and their families will be protected from the health risks and dangers at all times while separated (DeZube, 2016).
Vacation, Leave and Absences. Vacation will be provided to the employees in a yearly basis. The vacation will be during the whole month of December, with holiday pay. During the vacation, the employee will not be bothered by any job-related activities. In case of leave and absences, valid excuses will be illness, emergencies and death of immediate relatives. Salary will not be reduced if the absence will not reach one week (Koh, 1999).
Housing. Housing allowance will be provided to the employees since there will be the need to relocate and find a new place to stay (Koh, 1999). The housing allowance will be equivalent to $1500 and will be provided monthly along with the release of salary.
Relocation and Cost of Living. Since the employees will be moved to new location, they need to travel, complete necessary documents, and finally, adjust to the way of living in that region. In response to this, the company will provide the full processing of Visa and working permit as well as the travel expenses of the employees (Koh, 1999). Taxes that will be paid by the employees in their new location will be settled by the company, only deducting the employees’ previous tax payments. Also, the company will provide 40% of the total living cost of each employee in their previous residency, including transportation (ChexxInc., 2015).
Work and Educational Benefits. In order to support the living cost of the family members of the employees, assistance will be given to both the spouse and the children. The company will provide assistance to the spouse if the spouse is unemployed, or job assistance and referrals if their spouses will opt to find their own jobs (DeZube, 2016). Also, an educational assistance worth 10% of the total educational expenditures will be provided to every child of the employees.
I hope that you will consider this proposal and I also that the negotiation regarding this matter will start as soon as possible so that the new foreign production plant will be established smoothly. Also, this will enable the company to find employees who are willing to work for the foreign company sooner; thus, they can be oriented carefully and properly.
Thank you for the kind consideration.
References
Best practices for creating an international compensation package. (2015, March 20). Retrieved January 4, 2016, from https://chexxinc.com/best-practices-for-creating-an-international- compensation-package.
DeZube, D. (2016). What's Inside an International Compensation Package? | Monster.com. Retrieved January 4, 2016, from http://career-advice.monster.com/salary-benefits/salary- information/international-compensation/article.aspx.
Koh, A. (1999). Negotiating the Best Compensation Package for Your International Job Offer. Retrieved January 4, 2016, from http://www.allbusiness.com/negotiating-best- compensation-package-international-job-11466-1.html.
