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Global Common Denominator for valuing employees

Is there a global common denominator for valuing employees, particularly related to compensation? Is an employer responsible for paying wages in local cultural currency so that all global employees can afford the same standard of living as the corporation's headquartered employees? Or, is a base wage that guarantees a minimum standard for food, clothing, and shelter sufficient?

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For multinational companies (MNC's), the issues of compensation equality across their global network can be very complex and difficult to manage. There are many approaches that company's take in an attempt to equalize the global landscape. To help maximize equality of wages between headquartered employees and the global business units, a global common denominator often used to determine wages is "quality of life" that is customary to the location being evaluated as compared to the headquartered location. In most cases, wages will not necessary be equal to the headquartered location based on the conditions in the global location (Berger & Berger, 2008). The headquartered location will typically be in a highly developed urban area where the cost of living and wages is much higher than the cost of ...

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To help maximize equality of wages between headquartered employees and the global business units, a global common denominator often used to determine wages is "quality of life" that is customary to the location being evaluated as compared to the headquartered location. In most cases, wages will not necessary be equal to the headquartered location based on the conditions in the global location (Berger & Berger, 2008).

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