Research Paper
Year: 2019 | Month: December | Volume: 6 | Issue: 12 | Pages: 426-433
Analysis of Expatriate Compensation Policies in Multinational Companies
Yosua Francisco1, Yeni Absah2, Beby Karina Fawzeea Sembiring3
1,2,3Master of Management Universitas Sumatera Utara, Indonesia
Corresponding Author: Yosua Francisco
ABSTRACT
Now it has become commonplace in every developing country to require the services of an expatriate to build a company. It has become very common for foreign workers (expatriates to receive higher compensation than domestic workers. Countries have also realized that competition in the global era has arrived and cooperation between countries is needed in terms of labor. Expatriates are certainly not easy to work in a country they are not from. Every country naturally has certain conditions for hiring expatriates. Of course the arrival of expatriates to Indonesia according to KADIN (Indonesian Chamber of Commerce) is due to the low productivity of Indonesian workers, so that several Multinational Companies are interested in recruiting expatriates to work in their companies. The knowledge gap and capabilities in the use of technology also confirms that the competency of expatriates is more utilized in Indonesia. Not only that, the effectiveness and timeliness in the completion of work becomes a benchmark and is very influential on the targets that the company wants to achieve. With the high compensation received by expatriates, it can reach 2-3 times the compensation of domestic workers in Indonesia into a compensation policy and what indicators actually cause the high compensation of expatriates in Indonesia
Key words: Compensation Policy, Expatriate Compensation, Multinational Companies
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