Abstract
As multinational organizations expand their global presence, their approach to setting compensation policy will eventually become more sophisticated. When first sending employees abroad, compensation decisions are relatively uncomplicated and often negotiated on a caseby- case basis. Yet, faced with increasing complexity in the nature and number of international assignments, employers face the need to develop a policy designed to avoid morale and equity problems. At what point does an employer stop negotiating international assignee packages on a case-by-case basis and set up a formal policy? The answer depends on several factors that may change or evolve as the company expands its presence and operations in the world arena. When the organization reaches that point, it must create a cost-effective, fair and equitable framework—whether using a one-size-fits-all policy or separate policies to address different assignment categories.
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