Scenario ( Total Rewards- Human Resources)

The leader of a mid-sized organization asks HR to recommend an approach to total compensation practices for a new international location (the organization’s first). The HR director considers:

• The value the employees will add. Highly knowledgeable and talented workers will be required.

• Competitiveness in the local labor market. It’s tight. Many workers will have to be lured away from competitors.

• The organization’s current pay practices. In current locations, total rewards practices have lagged the market due to employer brand and significant labor supplies.

• The probable labor budget in the new location.

Questions:

1. What should the HR director recommend regarding pay practices for the new location?

2. What impact will this have on the organization?

3. What primary competency would the HR director be demonstrating?

4. What secondary competencies will be needed?