Companies with headquarters in the Netherlands and branches abroad often want their compensation policy to be somewhat comparable across all countries. This is to operate as much as possible as a single company internationally, while still allowing room for ‘local color.’ The consultants at Highberg can assist these companies in establishing an international compensation policy.
The labor market in China cannot be compared to that in Germany. And the one in Italy differs again from that in the United States. As a result, international companies often have a fragmented compensation policy and lack a clear overview.
The first thing our international clients ask for is insight into the compensation policy of the various branches. The consultants at Highberg achieve this using both quantitative and qualitative data. We map out the compensation structure for each foreign branch and compare it with market data so the client can compare it with other foreign branches. Additionally, we conduct interviews with recruiters, HR, and business leaders of the branches in question to get a picture of the story behind the numbers. Finally, we also consider the challenges with trade unions or other local employee bodies in our analysis.
Once the client has sufficient insight into the entire compensation policy, the next request is often: bring structure and unity. A globally active company wants to be more than just a collection of different enterprises. It wants a compensation policy that aligns with the overall strategy and enables employees to be internationally mobile. At the same time, there must be room for ‘local color.’ The bonus culture in the Netherlands is simply not comparable to that of, for example, the United States. The art – and the consultants at Highberg are masters of this – is to create a framework that offers unity while leaving enough room for local differences. ‘Freedom within a framework.’ That is the essence when it comes to shaping an international compensation policy.
