REWARD MANAGEMENT
Multinationals overhauling reward strategy due to globalisation
"Globalisation" is prompting over half of the European multinational companies surveyed by Mercer Human Resource Consulting to change their pay and benefits strategy.
The study, covering 34 multinational organisations, found that job evaluation and managing employee incentives such as base pay and bonuses will be the main focus of change over the next two years.
Mark Edelsten, European partner at Mercer, said: "When companies turn global their cost and pay structures become far more complex. Costs can soar if they are not managed tightly across the organisation.
Mercer reckons that employers now need to focus on their reward strategies and ensure they control base pay levels. "One way is to better understand and define job roles, as this helps to prevent drifts in salary ranges and grades," said Edelsten.
Importance of globalisation
As many as 47% of respondents consider globalisation a high priority. The most important aspect of global business strategy is to deliver and adapt global products to local customers. According to respondents, the key is to develop a team of staff with global skills and expertise.
"Global companies know they can't take a segmented approach to business. They need staff with an overview, who can see how changes in one area will impact on the rest of the organisation," said Edelsten.
Want to know more?
Title: Pay and People Management Survey: European multinational companies, Mercer Human Resource Consulting.
Availability: Copies of the report are available from James Corbett, tel: 020 7963 3373 or email: james.corbett@mercer.com.
Mercer Human Resource Consulting is the "largest consulting firm of its type in the UK, helping organisations create business value through their people". It employs over 3,000 staff in 17 office locations in the UK. To find out more visit www.mercerhr.com
Posted 1 November 2003