Category Archives: Compensation

Postings and discussions about compensation topics

Maxi-Devaluation in Malawi – HR Response

Posted on May 13, 2012 by | Leave a comment

Author:
Warren Heaps – Birches Group LLC

One of the most challenging situations that compensation professionals face is how to respond to unexpected or unusual external events such as maxi-devaluation, civil unrest, or natural disasters.

Flag of Malawi

On Monday May 7, the new government of Malawi agreed to the demands of the IMF and other donors, and floated the Kwacha, resulting in a 47% devaluation versus the US dollar. The new exchange rate, 246.26 Kwacha per US Dollar as of May 13, is fairly close to the parallel rate that has been in effect for the last several months, so in many ways, this move just makes official a rate that has been operational already in many parts of the economy. Continue reading →

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Posted in Africa, Compensation, Developing Markets, Global HR Expertise

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Salary Survey Insanity in Small Markets – Are You Looking for the Wrong Data?

Posted on March 22, 2012 by | 6 Comments

Author:
Warren Heaps – Birches Group LLC

Benchmarking compensation in smaller countries is challenging.  The usual approaches often do not work well, mostly because the market is small!  If the country is developing (most small ones are), then economic and social instability and immature labor market conditions contribute to the problem, too.

Some of the most common problems expressed by our clients include:

  • Not enough employers in my sector
  • Insufficient job matches for my company
  • Volatile results from year to year
  • Gaps in coverage, with a lack of information for specific levels

There are lots more, but you get the idea.

Continue reading →

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Posted in Compensation, Developing Markets, Global HR Expertise

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Birches Group, Aon Hewitt, Announce Partnership

Posted on January 18, 2012 by | 1 Comment

Author:
Warren Heaps – Birches Group LLC

I am delighted to announce today an exciting new partnership between Aon Hewitt and Birches Group.  Under the partnership, Aon Hewitt will make Birches Group surveys in developing country markets available to their clients, expanding their survey coverage to over 170 countries globally.

The two firms will also collaborate closely on consulting projects and promotional activities.

Here is a link to the full Press Release.

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Posted in Compensation, Developing Markets, General, Global HR Expertise, International Benefits

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International HR Forum Best of 2011

Posted on January 1, 2012 by | 3 Comments

Author:
Warren Heaps – Birches Group LLC

As we reflect back on the 2011 year just completed, we have compiled a list of the most popular posts on the site during the past year.  Each of the posts listed below had more than 1,000 views during 2011.  If you did not have a chance to view these posts when they were first published, here’s a great opportunity to see what you missed.

Why Culture is Important in International Business
Ten Steps For Building A Salary Structure
International Employment Law “Quick Facts”: Brazil
How Top Companies Manage Talent Development
The Way To Identify Your Future Leaders (Part 1)
International Employment Law “Quick Facts”: India
Global Salary Grades or Global Salary Structure?
Global HR Issues That Keep Executives Up at Night – Part 1
International Annual Leave Rules — Or I Want to Live in Brazil!
The Way to Identify your Future Leaders – Part 2
Square Peg in a Round Hole: Balancing the Global Salary Budget
Base Salary – Not So Basic!
Reverse Culture Shock (or Why Do I Hate Being Back Home?)
Creating High Performance Teams
From Training Departments to a Company Academy Part 1

We have much to look forward to as we enter 2012. We will be adding some new regular contributors to the site, and will be revamping the entire site over the next few months. We appreciate your support and encourage you to add your comments on how we can make the site even more valuable for you. Also, let us have your suggestions for future posts and other ideas you think would be helpful in advancing the site as a resource for international human resources professionals.  Finally, if you are interested in submitting a post, we welcome your participation.  Please contact me to discuss your interest.

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Posted in Compensation, Cross Cultural Insights, General, International Employment Law, Talent Management

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Ten Questions HR Should Ask When Your Company Expands Internationally

Posted on December 4, 2011 by | 2 Comments

Author:
Warren Heaps – Birches Group LLC

Companies are increasing the pace of international expansion, constantly seeking new opportunities and new markets.  One of the most commonly asked questions through our Ask the Experts feature and on other sites is how to prepare, from a human resources perspective, for international expansion.  It might be opening a new office, or just hiring one or two sales reps, but either way, there’s work to do.  If your company is expanding to a new country, what questions should you ask (and answer) as an international HR expert to help prepare your firm?

Continue reading →

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Posted in Benefits, Compensation, Global HR Expertise, International Employment Law, International Expertise, International Payroll

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Job Evaluation: Why Bother?

Posted on September 8, 2011 by | 10 Comments

Author:
Warren Heaps – Birches Group LLC

Recently on LinkedIn there was a somewhat heated and lengthy debate about job evaluation.  Many were questioning why companies should even bother with such an “archaic” exercise, while taking pot shots at a well-known job evaluation methodology that shall remain nameless (but begins with the letter H).  Some folks proclaimed market pricing was the solution to everything and rendered job evaluation a pointless and unnecessary process for a modern company.   Continue reading →

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Posted in Compensation, Developing Markets, Global HR Expertise

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Creating Salary Scales in Developing Countries

Posted on August 17, 2011 by | 4 Comments

Author:
Warren Heaps – Birches Group LLC

Many companies use salary scales together with salary grades to manage their compensation programs globally. There are many advantages to doing so, including cost management, positive employee relations and transparency which enables managers to be directly accountable for pay decisions.

In developing markets, creating salary scales is more challenging than in countries with more stable economic conditions. Developing country markets are volatile and often fluctuate from year to year based on a combination of factors. Cost of labor (supply and demand), tax and labor law changes, general economic conditions (such as inflation), business growth and expansion,  as well as unplanned events such as natural disasters, civil unrest and the like are all in the mix.

Continue reading →

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Posted in Compensation, Developing Markets, Global HR Expertise

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Square Peg in a Round Hole: Balancing the Global Salary Budget

Posted on July 26, 2011 by | 2 Comments

Author:
Warren Heaps – Birches Group LLC

Managing salary budgets on a global basis is a real challenge.  In some companies, the process is often dictated by the corporate finance department, which establishes the amount of growth in the budget “salary line” which is acceptable for the following budget year, say 3%.  That’s 3% in the currency used for budgeting, usually the headquarters country currency.

So how do compensation professionals make the global salary budget “come in at 3%?”  It’s kind of like fitting a square peg in a round hole.

Continue reading →

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Posted in Compensation, Developing Markets, Global HR Expertise, International Expertise

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Special Announcement from Birches Group and Emergence Growth

Posted on June 17, 2011 by | 7 Comments

Author:
Warren Heaps – Birches Group LLC

This post is a bit of a departure from our normal content, which usually focuses on the “how-to” of international human resources management.  Today we are making an exception to bring you some exciting news.

This week, my company, Birches Group LLC entered into an agreement with Emergence Growth, led by another one of our authors here, Yendor Felgate, to work together to expand our customer base in Africa.  Emergence will become the exclusive agent for our compensation and benefits surveys in Africa, focused on private sector companies that operate across multiple countries.

Continue reading →

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Posted in Africa, Compensation, Developing Markets, General, Global HR Expertise, Professional Development

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Global Mobility Policies for the 21st Century

Posted on May 26, 2011 by | 8 Comments

Author:
Warren Heaps – Birches Group LLC

It’s now almost the middle of 2011, so the 21st century is well underway.  The new realities of global business are upon us:

  • Companies are expanding from developed countries into new, high-growth markets in the developing world in record numbers.
  • Global talent is being snatched up across borders on a regular basis.
  • Companies are sending expats to new locations, and breaking new ground with each assignment.
  • Companies headquartered in developing markets like India, China, Brazil and South Africa, to name a few, are expanding along with multi-nationals from more established markets.
  • Demographic shifts will result in an increasing number of workers being sought from developing countries to replace the ageing workforce in North America and Europe.  In fact, McKinsey predicts that by the year 2040, the largest working-age population in the world will reside in Africa.

So what does this have to do with global mobility?  A lot!

Continue reading →

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Posted in Compensation, Expatriate Recruitment, Expatriate Selection, Expatriates, General, Global HR Expertise, Global Mobility Services, International Assignee Recruitment, International Assignee Selection, International Expertise, Repatriation, Talent Management

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