EMPLOYEE BENEFITS
That was the trigger to start putting together the processes and benefits accompanying global nomads. “We had more and more people leaving their home country and
moving from one assignment to another with no mid-term plans to return home. We were also recruiting people from countries where we do not have operations and expect these people to remain globally mobile. “Last, but not least, we are striving for the simplicity in
administration while delivering competitive compensation and benefits and world-class services to our assignees and their families.”
Payment for performance in complex times Greater scrutiny of executive pay and governance, with the rising
interest in more-flexible pay options, is also pulling payment for performance into greater focus. “Primarily, management is in place to satisfy shareholder’s expectations for a return on their investment,” says Simon Patterson. “This is by no means as easy as it sounds. “In a complex world, executives must continuously find and
execute investment opportunities that will earn more than the cost of the capital required. At the same time, they must deal with a hugely competitive global business environment. “Many argue that executives’ role is also to ensure all stakeholders
It notes the growing implementation of multi-tier policies by
assignment type, by business unit and by region, with expat-lite and local-plus policies growing in popularity. Almost six in ten of the 1,269 respondent companies in Santa Fe’s 2014 Global Mobility Survey reported having access to a suite of mobility policies depending on seniority.
Benefi ting ‘global nomads’ As well as identifying more interest in policies with flexible pay
options, Mercer’s research highlighted a rise of two-thirds in the number of ‘global nomads’ since 2008/09. Natalia Mikulich, director of compensation and organisational management at Japan Tobacco International (JTI), explains why the company adapted its global mobility solutions and developed policies for its global nomads. “One of the key considerations for us, therefore, was how to support
employees and their families who move from one assignment to another. We wanted to provide them with a set of benefits that can continue when location is changed. “JTI’s drivers to develop its global nomads concept and associated
benefits emerged the first day of the company’s existence. When the RJRTI [R J Reynolds International] business was sold to Japan Tobacco in 1999, a number of our international assignees lost their home entity.
are satisfied, the environment is clean, safety is assured, and social welfare is enhanced. While onerous – almost impossible in some cases – this is no more than the ‘day job’ for a senior executive nowadays. It should not be the driver of variable performance-based pay.” International pay and benefits today is also about putting in
place more rigorous metrics to link performance with global pay and benefits. Jack Zwingli, head of ISS’s (Institutional Shareholder Services) compensation business and presenting in Rome on managing complexity in performance-based remuneration, concludes that technology has the potential to play a greater role in setting and determining executive pay in the international context and within these wider trends. “The rise in performance pay has led to an increase in pay
complexity. Metric changes are frequent, for example, with over 60 per cent of firms making changes every year. “Companies are being asked to provide clearer rationales on award
design decisions, such as the rigour of the goal-setting process. The use of data and analytics will continue to grow to help companies evaluate alternatives and make better design decisions.”
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