Question

Explain the advantages and disadvantages of the following approaches to international compensation: Going Rate, Balance Sheet, and Local Plus. --- What were objectives of the Philadelphia Declaration of the International Labour Conference?

Answer 1

Explain the advantages and disadvantages of the following approaches to international compensation: Going Rate, Balance Sheet, and Local Plus.

International compensation provides monetary and non-monetary rewards to the employees
based on their contributions. These rewards include base salary, benefits, perquisites, long ans
short-term incentives.
Approaches to international compensation of expatriates:
1. Going rate approach
2. Balance sheet approach
3. Local plus
Advantage and disadvantage of gomg rate:
1. Equality with local nationals
2. Simplicity
3. Identification with host country
4. Equity amongst different nationalities
Disadvantages:
1. Assignments get varied for same employee
2. Expatriates of same nationality in different countries get varied
3. Problems relates to re-entry system
Advantages and disadvantage of balance sheet approach:
Advantages:
1. Same nationalities get equity between assignments and between expats.
2. Expat re-entry facilities
Bi 3. Easy communication system with employees

Disadvantages:

Expats of different nationalities and between expats and local nationals will get great disparities.
Administer get complex

Advantages and disadvantage of balance sheet approach:

Expatriate benefits

Disadvantages:

They will not get mobility premiums, hardship allowances etc

What were objectives of the Philadelphia Declaration of the International Labour Conference?

The objectives of the Philadelphia Declaration of the International Labour Conference

(a) labour is not a commodity;

(b) freedom of expression and of association are essential to sustained progress;

(c) poverty anywhere constitutes a danger to prosperity everywhere;

(d) the war against want requires to be carried on with unrelenting vigour within each nation, and by continuous and concerted international effort in which the representatives of workers and employers, enjoying equal status with those of governments, join with them in free discussion and democratic decision with a view to the promotion of the common welfare.

(e) all human beings, irrespective of race, creed or sex, have the right to pursue both their material well-being and their spiritual development in conditions of freedom and dignity, of economic security and equal opportunity;

(f) the attainment of the conditions in which this shall be possible must constitute the central aim of national and international policy;

(g) all national and international policies and measures, in particular those of an economic and financial character, should be judged in this light and accepted only in so far as they may be held to promote and not to hinder the achievement of this fundamental objective;

(h) it is a responsibility of the International Labour Organization to examine and consider all international economic and financial policies and measures in the light of this fundamental objective;

(i) in discharging the tasks entrusted to it the International Labour Organization, having considered all relevant economic and financial factors, may include in its decisions and recommendations any provisions which it considers appropriate.

(j) full employment and the raising of standards of living;

(k) the employment of workers in the occupations in which they can have the satisfaction of giving the fullest measure of their skill and attainments and make their greatest contribution to the common well-being;

(l) the provision, as a means to the attainment of this end and under adequate guarantees for all concerned, of facilities for training and the transfer of labour, including migration for employment and settlement;

(m) policies in regard to wages and earnings, hours and other conditions of work calculated to ensure a just share of the fruits of progress to all, and a minimum living wage to all employed and in need of such protection;

(n) the effective recognition of the right of collective bargaining, the cooperation of management and labour in the continuous improvement of productive efficiency, and the collaboration of workers and employers in the preparation and application of social and economic measures;

(o) the extension of social security measures to provide a basic income to all in need of such protection and comprehensive medical care;

(p) adequate protection for the life and health of workers in all occupations;

(q) provision for child welfare and maternity protection;

(r) the provision of adequate nutrition, housing and facilities for recreation and culture;

(s) the assurance of equality of educational and vocational opportunity.