Please read each passage below and respond to each part. I DO NOT need a reference or title page, however please provide the reference(s) underneath the passage. Please label as I have done below, example Part 1 and place your response along with the reference. Please keep each one on the same document! Please cite properly and use correct grammar. 

Part 1

 Home country-based pay, headquarters-based pay, and host country-base pay are still more concepts. Well each one might have their individual differences, they both arrive from a understanding of compensation and benefits. When looking at Home Country Based Pay it is understood that the expatriate is receiving compensation and benefits that are the standards of their home country while working in another. Its important to understand that the highlight of this pay is that the expatriate is gaining what would be the standard of their home country in another location. This is a key factor in ensuring that the employee is as comfortable as their home country counterparts. While on the other hand a challenge of this understanding is that companies and organizations are required to support the expatriate and bringing this standard. A counter part of the group is Headquarters Based Pay. This concept looks at the core foundation of where the organization lies. Its understood that it doesnt matter where the employees are located but they will still receive the conversation and benefit that is fly to the home base of the company. For example if the company is located in United States and they have employees and expatriates all over the US and in Canada and Mexico and Japan and China, they will all receive the compensation and benefits pulled from headquarters. The highlight of this concepts is the benefit of having every employee be within a set of standards that is based upon the organizations headquarters. Doing so helps the organization and all the employees build a clear distinguish unified understanding. A challenge to this might be that if the employee is located at a country that might have better benefits and standards of conversation the employee does not qualify for that understanding. For example if the company is in the US but they are located in Germany working for the company they might not receive the German working laws in benefits requires. So the employee can easily be missing out on paid education or even parental support. Finally the concept of Host Country Based Pay is very similar to the other two based pay. But rather being pulled from their home country or headquarter country they are being reviewed in their host country. So the employee can be working for the organization in one location might be located at another. Ive been looking at another they will see if that host countries compensation benefit standards. So when looking at this concept if the expatriate is in another country instead of receiving the benefit of conversation of their headquarter or the Home country they will receive the benefit and conversation of the house country. The country that is hosting where they are living. As a benefit or highlight of this understanding the organization can find success in paying less than normal. Theyre able to have employees work for a standard that might be below what the organization has but is the common standard for where the employer is located. The downside shoe this concept is for the employee as theyre not getting the same conversation and benefits that is available to them in the country that the organization comes from. Being that the employee is only receiving what is common to their country which might be a very low standard.

All three of these Face pay unique within their own understanding. They do follow a similar outline but have their own unique benefits and challenges. When using the idea of approaching these base pay is critical to understand the overall budget and approach that the organization would like to do. If an organization wants to utilize their budget as best as they can in order to meet the needs of their environment they might want to look into home country base pay. And the summer concept is organization is hefty enough to provide excellent compensation and benefits they can just simply pull from the host country base pay concept. While on the other hand if the organization is located in a successful country or a country that is sustainable they can review the concept of headquarters base pay as an option too. As a whole the organization has considered where they are located compared to where they would like to pull from. Its critical to understand the environment and the countries to gain an overall support in terms of their budgeting. Doing so will help support their decision on making what is appropriate for international pay. Keeping track and understanding their environment helps organize and balance how host country income tax can be reviewed. With a team that understands the guidelines and standards of benefits and compensation for every country that they have an employee in or have an employee coming from help sustain the clear balance between every different country. It can be a clear challenge when trying to get employees willing to accept foreign assignments. Employees have to understand where their needs meet with the standards of the organizations conversations plan. If an organizations to cost cautious about their overall operation and offer something that might be too low to the standards of the employees they might not be willing to support the assignment. In doing so this reduce the attraction and overall approach to an assignment for an organization. On the other hand when an organization might have a wealthy sustainable compensation plan employees are willing to do anything to stay within the loyalty of organization. In doing so this helps the company grow its success and ability to become approachable and gain a reputation of preference. So while organizations might not be fully aware that the compensation plan does speak volumes is critical to build a reputation that is open minded and aware of the employee situation.


Martocchio, J.J. (2017).  (9th ed.). Pearson.

Part 2

Martocchio (2017) advises that home country-based pay is most suitable for expatriates that are on short-term assignments (less than one year) (Section 13.4). This is generally because employees are likely to compare their salary overseas to the wages they earned in the U.S. With no drastic change between the duties and responsibilities of their roles, maintaining the same salary will decrease the likelihood of compensation/equity problems. 

Headquarters-based pay 

Organizations will spend less time and cut costs as the location where an employee works will not have any effect on compensation. Each employees pay will be based on the pay scales being used at the headquarters location. This is especially beneficial in regards to planning and cutting costs for employees that will be moving around to several locations throughout their time with the company. 

Host country-based pay 

Employee compensation is determined using pay scales and data from the host country to create a compensation package that is equivalent to the individuals in that country. Martocchio (2017) says that Expatriates base pay will be competitive with other employees base pay in the host countries, and companies may be seen as more legitimate employers by following local norms (Section 13.4). This pay method is typically used for employees that will be working/living in the host country for more than one year. I believe this is a beneficial method because the employee will be able to become acclimated to the societal and cultural norms of the host country. Employees may be subject to living at a lower standard than what they are used to if the rate of pay norm in the foreign country is less than what they make in their regular position. Martocchio (2017) says that this creates risk and uncertainty for the employee as purchasing power decreases (Section 13.4).

Currency stabilization is an important factor to consider when determining appropriate pay strategies. The conversion rates from one currency to another can result in a loss of compensation for employees. When traveling to another country for vacation, I initially converted my U.S dollars to pesos before I left the U.S. When I arrived at the resort and decided to book an excursion it turns out the price in American dollars was less than the price in pesos considering the loss from converting my U.S dollars. While visiting different locations during my trip I quickly realized that the conversion rates fluctuated from one place to the next. As an employee living in a new country and receiving income that must be converted I would imagine that it would be frustrating to deal with converting currency on a regular basis. 

The compensation plans set by employers affect employees willingness to accept foreign assignments because essentially these assignments play a role in their daily living especially as they will need to adjust to cultural differences and norms. In my opinion, the compensation plan is key to making employees feel that it is worth it. After all, there is so much discussion over compensation because it is a retention and attraction factor for employers nd thier ability to gain a competitive advantage. 


Martocchio, J. J. (2017). Strategic Compensation: A Human Resource Management Approach. (9th Edition). Pearson.


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