Identify the main challenges and issues related to international compensation

Provide recommendations that can help to cope with the challenges/issues that you have identified.

SALARY DISPARITY BETWEEN CHINESE LOCALS AND INTERNATIONAL ASSIGNEES When an Mie enters a courtry the the Propied fepublic of China (F9C) is uses international assignees who won side by side with iockl Criese encloyees. In workare fointy, Crinese locals with serilar leves of educicion and ob responsbilies lerd to compare themselves with these irtaratival assibees problems. coused by diflerent lieng standards and weftue and tasabion systemit, and as Arther coerdicated by cunency vatation probleme. The Ghinese lesor marlet is dided ino two submarkets that respectively acoen mocits intimanon assibrees and locas, Nhough compensation concansors are uauly mace between ingicduats with simitar ievets of educafon and po imponsibities. no matter the submatiet the indivials art in. the comparabicy of the saby assigreesi. within the satie sutriahet. Despite the tact tut Crurese locas a and educational bockpound, locas and opattides conpete only eitin exth in the estatishment of the structural salary drsalte. asighees has many causes: - Curfent nodes of determining eqpatcute eon-persation paciagers isuch as ad hoc packayes for each assereel. - Lecal acoeptance mizvies the podeiens of salay drearty. - The lack of cost conscioushess because of tre neit pruacy of the assegee contracts. The sulay incquity between Chinese locels and intrational ansegees s under increased criticism in Chira and resils in sevoril probie-s: - Moraie and byaty of the locas continue to suifer ton tre itsparty. - Govemmert peterential treatmerit wil evertaify be dscrirtunued. - Risire sressure from local competiony as ecppariora by locils esterd across find untac. However, the efforts of MNEs should be commitied to rotionalare tre esutine - increase rpetriation of lecal Drintse managin. - Estabish common standards for iscals and interratonal avserees in semis nostion weth simar tesponsibilies. - Loe exper HR agerte ts stieamine the seiectoon process of locils and intemational assigrees. - Poctuce uncefrinty oinhe the intemusoral aecigmers by ersume clarty about anspiees, soles and the purpones of their assierments. Whie some salary dsperities between locis and enmational mes rees are inevitable, severil practical solution can be implemerted tw ieduct consequehces of this type of contpersabon eouth. Pent wasmetir Limecsh 2007