Cultural differences that exist for international companies
Reply to the following post:
When a company makes the decision to go international, they
will need to transfer some of their employees to the new location. Transferring
an employee overseas is a huge step for both the employee and the employer, and
with that comes several things for both parties to consider. First is the issue
of the geographic differences in the cost of living in a new country. “The
employee usually gets allowances including cost-of-living, relocation, housing,
education and hardship allowances” (Dessler, 2013). A company cannot just
expect an employee to pick up and move their family overseas without having
solid numbers to depend on, and they cannot be expected to foot the bill on
their own.
Second are the compensable factors, or “factors that
establish how the jobs compare to one another, and that determines the pay for
each job” (Dessler, 2013). Moving your company overseas means that the
company will need to hire people in the new country as well. The new company
will need to be sure that the employees native to the new country have the same
qualifications and abilities as the employees in the home country.
Third is evaluating the employees overseas as you would in
the home country. The company needs to evaluate the employees that were
transferred overseas to determine if they are performing as well as or better
than they were performing in the home country, and make the decision to either
keep them overseas or send them home. They also need to evaluate the native
employees to ensure that they are on par with the employees in the home
country.
