For a US company looking to relocated to Kuwait, it should consider unique characteristics of the work environment, local and expatriate staffing as well as the total rewards package during compensation. One of the characteristics of Kuwait, similar to other nations in the Gulf Cooperation Council, is that it is highly influenced by the Islamic culture. Companies should ensure that the workforce they hire respects the religion as well as Arabic traditions. The second feature is that there is low availability of skilled workers. There are government requirements to hire a certain percentage of locals in the firm but most of the employees tend to be foreigners (Bjorn 2014). The firm should ensure that it hires individuals who respect the Islamic code, whether they are Muslims or not. It also important to observe Arabic laws on gender roles to ensure that they does not conflict with the local requirements.
On compensation, Middle East countries have remuneration plans that typically include components such as allowances in addition to basic salary. The firm should ensure that it sponsors its foreign workers in areas such as housing and transport to allow them to work smoothly. There are also some remuneration changes when hiring the local population due to other additional benefits. The company should ensure that all the packages are equal to all workers. The pay-per-performance strategy is not compatible especially for the locals as they expect equal treatment on all business matters (Clive 2014). They find it rude to carry out performance appraisal or offer gifts in public as they see it as discrimination or singling out specific individuals. However, some forms of remuneration such as commissions on top of the basic pay can be conducted. It ensures that the workforce is motivated to go an extra mile in performing their tasks.
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References
Bjørn T. A. (2014) "An Innovation driven Economic Diversification Strategy for Kuwait". Kuwait Foundation for the Advancement of Science s. pp. 49–50.
Clive, H. (2014). Modern Arabic: Structures, Functions, and Varieties . 4 th Edition . Georgetown University Press. p. 75
