Reference no: EM132984272

CASE: Compensating a Global Workforce  

Global oil's expansion of the international workforce to include non-Ghanaian employees has brought increased capabilities and talents, along with a complex set of compensation problems for the Director of International Human Resource Management (IHRM). Global oil, a Ghanaian oil drilling company has adopted a Regiocentric and Geocentric staffing policy, they therefore recruit foreign engineers to work alongside their Ghanaian counterparts.  Global oil has employees from Saudi Arabia and South Africa. These expatriates are normally given a 5-year contract after which they return to their home countries.  

Home country nationals are dissatisfied, an example of the type of complaint involves the differences in compensation of field engineers. Global oil has Ghanaian field engineers who are earning of 20,000Ghc. It has other field engineers from Saudi Arabia who earn 30,000ghc and South African employees who earn 25,000ghc for the same job. Not only do they work side by side, but they live near each other and shop at the same stores. Ghanaian employees are angry. they are requesting the Human Resource Manager to equalize the salaries of all field engineers regardless of nationality. The Human Resource Manager has tried to explain to the home country staff that as the human resource manager, one is required to put in place a pay system that will compensate expatriates either by pay or by provided benefits in a consistent, fair and equitable manner and will allow their repatriation with minimal setbacks.

Identify and explain the salary approach Global oil Ghana is applying in this case .

Explain any three (3) key components of an expatriate's compensation allowance to further justify the differences in the expatriate's salaries? 

Discuss three (3) advantages Global oil will derive from equalizing the salaries of all field engineers regardless of nationality.