Managing financial issues in the global context and ensuring that the needs of all parties are met is a rather challenging objective. However, for a company of a comparatively small size, such as Yarn Paradise, the range of issues to be faced when addressing the process of remuneration is going to be quite small. Specifically, it will be necessary to ensure that all staff members receive the required benefits. For example, controlling the transaction and making sure that the target individuals receive the provided payment will be necessary. Additionally, given the fact that Yarn Paradise operates on a global level, identifying obstacles linked to country-specific regulations regarding digital payment and the related transactions and selecting the methods of overcoming them (Nacife et al., 2019). Thus, the organization will be able to provide remuneration to its staff members accordingly.
Global remunerations may seem quite intricate due to the slightly convoluted process of implementing the key stages of payment. Specifically, employees will need to submit invoices with the required information regularly so that the company can send them salaries accordingly. Specifically, the global remuneration system requires the employee’s name, the number of performance hours, and the required amount (Ramstetter, 2014). Furthermore, the specified data must be submitted within at least two weeks of the invoice receipt (Elsby & Solon, 2019). Therefore, schedule issues and the possibility of staff members defaulting on submitting the required data may delay the payment process (Elsby & Solon, 2019).
Additionally, problems may emerge in international business settings, particularly for a company such as Yarn Paradise, if incongruences between the legal standards of employees’ state of residence and those of the company are misaligned (Nacife et al., 2019). Therefore, it is vital for an organization to examine the legal and technical issues of providing remuneration to residents of the states where the company’s employees live (Cruz et al., 2020). For instance, the use of standard payment systems, such as PayPal, may be unavailable for residents of some countries (Almeida et al., 2019). Therefore, it is vital for an organization such as Yarn Paradise to keep its payment options open and introduce several global remuneration services so that staff members can choose the one that they deem as the most effective and convenient method.
International Assignment Management Compensation Systems
For a company functioning in the global environment and, therefore, functioning as a contractor for staff members worldwide, it is highly advisable and overall beneficial to familiarize itself with key global compensation systems. Thus, issues in employee compensation and the related tasks will be prevented and managed successfully (Tarique et al., 2015). In an organization such as Yarn Paradise, the process of employee remuneration is complicated by the multiple issues linked to the complexity of the processes and the need to introduce homogeneity into the payment framework. Therefore, global remuneration as a simpler and, therefore, more effective approach should be considered as the main tool in providing international compensation.
Common Types
Traditionally, two main types of international assignment management compensation systems are distinguished and utilized. These are the global remuneration system and the balance sheet approach (Mitra, 2017). Both of the tools provide positive results and serve to provide timely payments to employees in a multinational business context (Madhani, 2019).
Advantages
The balance sheet approach offers a range of advantages for an international organization. However, the main concerns are its ability to maximize the purchasing power of employees (Rashed & Tabbour, 2019). In turn, the global remuneration system will benefit an organization due to its simple structure and, consequently, its increased flexibility.
Disadvantages
The balance sheet approach is often seen as far too complex and, therefore, too time-consuming, which can be a problem for a company that is already struggling to manage its multiple tasks successfully. In contrast, the global remuneration system lacks the intricacy needed for complex planning and management of financial operations.
Yarn Paradise
To improve the approach toward managing remunerations within the target setting, several factors will have to be considered closely, First, the fact that the company currently employs a comparatively small number of staff members despite being a multinational organization should be brought to attention. Additionally, the company being set in Turkey also defines the further course of actions, implying that Turkish laws and regulations will have to be followed when implementing the remuneration-related transactions. Finally, the fact that Yarn paradise uses the support of contractors such as DHL and UPS to assist it with the delivery of its products to the end customer should be taken into account. Given the small range of targets for remuneration, a simpler and better-coordinated framework of global remuneration could be suggested.
In turn, since managing Yarn Paradise requires carrying out a range of complex operations that must be coordinated accordingly, adding an overly complex process of handling remuneration issues does not seem to be reasonable, which is why the international assignment compensation framework should be suggested as another crucial option. The proposed tool will help streamline the process of payment and ensure that all employees receive compensation in a timely manner. Furthermore, the international assignment compensation approach will create opportunities for transparency, which a company of a large size and scale, such as Yarn Paradise, should not overlook.
References
Almeida, F., Almeida, J., & Mota, M. (2019). Perceptions and Trends of Booking Online Payments in Tourism: Almeida, F., Almeida, J., Mota, M. (2019). Perceptions and trends of booking online payments in tourism, journal of tourism and services. Journal of Tourism and Services, 10(18), 1-15. Web.
Cruz, M., Milet, E., & Olarreaga, M. (2020). Online exports and the skilled-unskilled wage gap. Plos One, 15(5).
Elsby, M. W., & Solon, G. (2019). How prevalent is downward rigidity in nominal wages? International evidence from payroll records and pay slips. Journal of Economic Perspectives, 33(3), 185-201.
Madhani, P. M. (2019). How compensation and benefits build and sustain a customer-focused culture. WorldatWork Journal, 28(2), 45-58.
Mitra, A. (2017). Culture, institutions and global compensation systems. WorldatWork Journal, 1, 25-37.
Nacife, J. M., Soares, F. A. L., & Castoldi, G. (2019). Socioeconomic characteristics and the impacts of land use changes to sugar cane in Quirinópolis, Brazil. Journal of Agricultural Science, 11(10), 180-193.
Ramstetter, E. D. (2014). Wage differentials between foreign multinationals and local plants and worker quality in Malaysian manufacturing. Asian Development Review, 31(2), 55-76.
Rashed, A. N. Z., & Tabbour, M. S. F. (2019). The engagement of hybrid dispersion compensation schemes performance signature for ultra wide bandwidth and ultra long haul optical transmission systems. Wireless Personal Communications, 109(4), 2399-2410.
Tarique, I., Briscoe, D. R., & Schuler, R. (2015). International human resource management: Policies and practices for multinational enterprises. Routledge.