International human resource management Essay Example | Topics and Well Written Essays - 2000 words - 1

International human resource management - Essay Example As a function of understanding the list of complexities that must be entertained, this brief analysis will count the following as the main determinants that must be engaged with in order to effectively set wages for multinational employees: level and types of skills required, the overall supply and demand dynamics of the labor force, geographic considerations, employment setting, compensation philosophy, employment stability, tenure, and governmental regulations. It is the hope of this author that be analyzing these key determinants, the reader will be able to draw a further level of inference upon the key dynamics that define the means by which any large multinational firm must engage upon the issues of wage setting and salary concerns with international partners. The first issue that any firm or organization must integrate with is the kinds and level of experience that they require. One can understand this as a simple function of asking whether or not the jobs that are being offere d will require a high level of education or prior experience or whether they can easily be filled by any number of individuals (Winkler et al, 2013). As such, with regards to the British expatriate managers and engineers, the salary determinations can and will be effectively straight forward as they will reflect a slight and/or nominal increase over the rate of pay they received in England due to the fact that they will now be required to move to location and be remunerated based upon the additional strain and hardship that such a lifestyle and location change necessarily portends (Simpson, 2007). Conversely, the externalities of skill necessarily dictate how the local employees will be salaried and to what extent these salaries will be commensurate with or far below the same levels of expertise offered elsewhere in the world. The single most important determinant of labor and the rate at which it is paid is of course the supply and demand ratios that exist within the given system. This can be understood through a situation in which a given economy may have 1000 workers who specialize in the labour fields of A, B, C but only have 5 employees that specialize in labour field D. As a function of this low level of representation within the labour market, these individuals necessarily command a premium; both in the country in question as well as likely within the world at large (Songstad et al, 2011). The supply and demand for labor within a given market is one of the reasons that many firms have sought to export and/or relocate talent acquisition portions of their business to different regions around the globe. In hopes of saving money and finding the cheap and extant talent that can further drive their firm or organization, many entities have sought to merely move operations to where the labor specializations are highly concentrated; albeit not always necessarily cheaper. This is done as a means of providing a base of production and specialization that can be dra wn upon for many years into the future. With regards to the salary concerns for those individuals that will be brought into the given system as expatriates, again concern should be given for these individuals that they are paid commensurately with the specialists in their field at home as well as commensurately, and likely higher than, those individuals who specialize in their own field within the nation in question (Ployhart