Benefits as an Instrument of Motivation

Development of the global economy leads to the spread of multinational companies operating in all parts of the world. It follows that multinationals perform relocation of significant resources to other countries, from which eventually derive a profit from the business operations performed there. The influence of growth of international economy has become a major force in business and therefore human resources management. This is a fact with which they must reconcile and face all the multinational companies, and to coordinate policies and procedures to effectively maintain a balance between the needs and desires of citizens of Host Country Nationals, Parent Country Nationals and Third Country nationals. Compensation system is one of the most complex areas in the field of management at the international level of human resources. The reason that makes this system so complex is the need for harmonization of payment systems with local laws and customs of persons for compensation of employees, which also has to fit with the global policies of multinational corporations. In addition to the payment system, it is necessary to carefully consider using incentives as a motivation and reward system for employed persons belonging to one of the above three categories of citizens.