How to Create a Global Compensation Plan

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Posted in Blog by Chrissy Dooley
Mon May 08 2017

A global compensation plan requires balance, research and care - and that’s just to remain compliant. Creating a competitive compensation plan for your workforce requires insight into the current market rates and benefits. Real-time data sources like PeopleTicker help you understand what is happening in the market right now vs survey data that can be over a year old.

A multinational organization must understand labor laws and workforce regulations in every location they operate. Cultural influences pertaining to compensation must be taken into consideration. For instance, the practice of tipping is expected in the U.S. but considered rude in other countries. This can impact income tremendously if you work in a profession where tips make up a portion of overall compensation.

Do you know how culture influences the effectiveness of your global compensation plan? Find out!


Along the lines of business objectives and strategy, consider how your organizational and employer brand has influenced compensation decisions. Chances are your values and mission have had an effect on benefits, pay and perks. Though regulations and compliance change over borders and seas, the core meaning behind your work and employment has not. If something has set you apart in one location, work to create that same value in others. Salary and perks are the first decision your candidates will make when evaluating employment with your company. Your brand and culture are also important, but without the right pay structure, you will have difficulty attracting and retaining talent.  

With the right plan in place, navigating global compensation efficiently is within your grasp. Follow these quick tips to begin building a better approach to managing your multinational company’s compensation package.


Include Representation from all Company Functions

Your organization has amazing resources within your own walls. Workforce experts reside in the HR department, budgeting and tax prowess can be found in finance and that’s just the basics. Legal teams are practiced in obtaining and learning compliance and regulations as well as capable of reaching out to the correct contacts when in doubt. The communications and marketing team know how to attract new audiences and have connections to other communicators and social media.

Even better, all employees can attest to what excites them about working for the organization, and might even have their own knowledge of various national and cultural habits. Capitalize on all the insight at your fingertips. It will give all departments the chance to have ownership in the changes and will only help to serve the decisions your organization makes.

Check out our guide on how to build an HR compensation budget for a permanent workforce.

Gain Critical Executive Buy-in

Tapping into your workforce for insight and knowledge-sharing is great for getting employees onboard, but executive buy-in is pivotal. Whether you’re planning to move into a new market or want to adjust an existing compensation plan, introduce senior leadership at the beginning. Plan for touch points within the process as well. The sponsorship and support of top-level management will mean a better chance of efficient and timely approval and can make the difference in a successful launch.

Research Cultural Influences

Consider the employees and teams that currently reside within the nation(s) for which you are researching compensation. If this is a new office location, take the time to visit and become immersed in the culture.

Again, many of your employees might hold valuable insight into various countries, so solicit their feedback on what is important to workers in the area. The research will pay off in more than one way. For one, you will develop a plan that resonates with the priorities of your new workforce. Additionally, you will show your current workforce just how much consideration you are willing to put into compensation and benefits planning.

Identify Local Labor Regulations and Expectations

The most important piece of any compensation and benefits plan is found in its relation to local and national regulations and laws. These are the bare minimum elements that cannot be ignored, no matter what your brand or company culture believes. Requirements in familiar territories are easily overlooked but the addition of foreign properties provide an increased chance of mismanagement. Collaborate with corporate advisors, consulting firms and other experts to ensure you’ve got a good idea of what the local market’s current needs are and how your business can reflect that.

Communicate the Program

Ineffective communication can cost a large company an average of $62.4 million per year. Another survey of smaller organizations found that miscommunication costs their organizations an average of $420,000 per year. No matter the size of your organization, communication is pivotal. Work with your communication department and leadership to ensure the tools you use will be seen and understood by the intended audience. Everything from booklet creation, intranet posts and other materials should be planned in advance. Be sure you leave proper time for translations and employee information sessions, too.

Check out these 5 steps for building a competitive compensation plan!

Review Quarterly

Think of how often the local market wavers around skill sets and experience levels. One quarter, the need for customer service representatives can increase, while the next year the need for IT experience outweighs the number of available professionals. Laws and regulation changes are just as prevalent. The market responds with fluctuating pay expectations and benefits packages. To remain compliant and ensure top productivity levels, your compensation benefits plan should be reviewed often. Also, your continued reviews should focus on how the employees are using compensation offerings and if the ROI of specific packages is there. 


Miscommunication costs large companies an avg. of $62.4 million annually. 


Entering a new market is tough but can provide an exponential opportunity for your organization. If you struggle to navigate the constantly fluctuating workforce and compensation markets even within your own nation, you aren’t alone. It was through this extensive process that PeopleTicker was created. We are the global standard for labor rate data and we put the power of real-time predictive analytics into the hands of organizational leaders everywhere. PeopleTicker’s localized search capabilities means you can easily forecast and build tactical global compensation plans, no matter where your business strategy takes you. 

Stay competitive with PeopleTicker's Private Labor Index to compare your labor costs to market rates instantly:


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