A compensation system can become complex long before a company realises how difficult it is to manage.
One case in Global Lessons: A Page from Modern Japanese Human Resources Management looks at a Japanese financial company’s UAE branch, where a review revealed 16 different salary tables.
The lesson is not that multiple salary tables are inherently problematic. Where wage markets differ, separate structures may be necessary.
The more important question is how companies manage those differences while developing local employees into capable leaders.
Read more in Global Lessons: A Page from Modern Japanese Human Resources Management.