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Global Compensation and Benefits Strategy. Your firm is a multinational consumer electronics organization which has five (5) profitable subsidiaries in Taiwan. Due to pandemic, the firm suffered 40% decline in over-all revenue and whilst the business is still on profitable path, all future expansion and acquisition projects where kept on hold until situation improves. The 3000 strong workforce are mostly local nationals with some expatriates (PCNs) in the management and highly skilled roles. Recently, the country where these five (5) subsidiaries are based, has passed a landmark law enacting a minimum wage and standard benefits beginning next month. This will significantly impact people cost and disrupt budgets already approved. The CEO at the headquarters is concerned with the feasibility of maintaining significant number of local nationals. After a brief video conference with the country manager, the CEO expressed his plans with the idea of replacing half of the locals whilst simultaneously concerned on the risks of having highly collectivist culture there. As the Chief People Officer at the headquarters, discuss your action plans to the CEO relative to global compensation and benefits strategy and cultural management.
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