Local and International? Managing Complex Employment Expectations

Question 1 

A company provides various benefits for the workers in a traditional expatriate package. First, the company pays for the different pre-posting trips for the expatriates. Pre-posting trips are the trips that people take before posting in a new city. The primary purpose of the pre-posting trips is the identification of the intended residential areas and the possible schools where children may be taken for learning upon migration. Another benefit that the company accords to the people posted on international duties is that such people are given both financial support and allowances to facilitate their settlement in the new residential areas of the worker. Thirdly, the expatriate package the company offers a salary scale similar to what they used to receive in their country of origin. This is essential as it allows such people to maintain their living standards identical to those of their original homeland. For instance, people are paid with an international currency, such as American dollars, which help in maintaining the payment standards. 

The last benefit that the company offers is accommodation for substantial flights back home. In this regard, several traveling allowances are provided to enable the people to make several trips back home for the first two years of relocation to save them from feelings of home-sick. However, there arise several limitations, accruing from handling the company's emerging needs. For instance, the company faces a significant challenge in trying to resolve its emerging issues, such as competition from similar companies. Besides, the company faces the challenge of trying to minimize its expenditure while maximizing its profitability; as per the requirements of globalization. Then there is the issue of pre-posting flights. These are the traditional costs which are almost three times the base salary of the workers. This implies that the company ought to limit the expenditure as much as possible, hence the need to cut the expatriate assignments to only critical positions. Thus, the company may opt to make some of the people optional, a situation that may endanger the people's career, especially to those new in the job, and are investing a lot in the company. Also, the company does not pay for the pre-assignment. There is a tendency of people to misuse the services through frequent changes in the countries. 

Question 2 

The local international policy stands in the middle of the expatriate contract and the domestic contract; it is not a pure local contract. The employees are bound to enjoy both the expatriate benefits and local salaries for only two years. This action aims at achieving a cost-effective deal for the company and protection of the local employees' interests through minimizing misuse of the expatriate employees' benefits at the cost of the company. It is worth noting that this contract focuses on those employees willing to shift to other countries for their reasons, hence minimal requirements for the company's intervention. 

SWOT Analysis for Local International Policy 

The primary strength of the local international policy is that it is relatively cheaper than the traditional expatriate contract. This is because the local international policy offers fewer benefits to the employees. Besides, it promotes local talents through discouraging the expatriate contracts. The policy also motivates the local talents through the provision of equity to all workers. The capital saved may be used in the development and expansion of the business. However, some employees may lose motivation due to profound benefits and seek greener pastures elsewhere, leading to loss of talented workforce and best employees. 

Question 3 

Concerning the international mobility on a local international contract, both the employer and the employees have varying needs. For instance, the employer anticipates incurring minimum cost during talent transfer. He or she protects the interests of the local employees. The employer needs the application of the theory and the principle of equity in the entire organization. He or she provides essential support at the initial stage. The employer also safeguards both the organizational and the employees' needs. Finally, the employer needs to retain key talent and employees. The employees, on the other hand, aim for better opportunities. They need to get adequate settlement support in the new residential country. Employees also need both medical and educational help for their families. Finally, the employees anticipate higher salaries as compensation for the deprived national security and culture in their country of origin. 

Question 4 

There is a sheer difference between the expatriate contract for expatriates, local international contracts for local international hires, and local contracts for external international new-recruits. For instance, the expatriate contract offers an extra dose of benefits which comprises of unique treatments, increased wages, perks, as well as benefits. The local international contract, on the other hand, avails similar benefits in initial stages of settlement with a local salary and a local treatment after two years. The local contract belongs to the new joiners who, although may fail to have any exclusive benefits, enjoy treatment benefits just like any other local employee in all aspects. 

With regard to the theory of equity, the distribution of the resources should be fair and equal across all the involved parties. In this case study, the referred persons are as follows: 

Expatriate Contract: Akiko and other local employees 

Local International Contract- Akiko and other local employees 

Local Contract- Hiroshi and other local employees 

The role of procedural justice is to ensure that there is fair rule applicable to all employees to provoke positive behavior intents across the entire employee body. Therefore, the company should use the rules for every employee to promote fairness in the workplace. Thus, there should be similarity in treatment where similar cases occur, and the company's decision-makers should avoid biasness. Besides, the company should embrace the policy of raising voice, representation, and justification. 

Question 5 

To make the Local International policy for this new international employee population applicable on a global basis, the company needs to put some factors into consideration. First, the company should start the execution of the policy from the Board of directors. From here, the system should flow downstream to the entire 60 countries. Then the policy documents and rules are channeled to reach the various departments and divisions of each of the countries for implementation. This will ensure that the rules are implemented in a manner that ensures equity, fairness, and justice for all.