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  • Essay / Inequality Reward Policy and Unequal Pay for Locals in...

    Since Vietnam became a member of the WTO in 2007, there are many opportunities for foreign organizations to operate in Vietnam, which also provides more job opportunities for expatriates. Expatriates are therefore becoming increasingly important to the success of many multinational organizations (Peter, Marion ad Ellen, 2008). The reward system of multinational companies has recently moved beyond the original domain of expatriate compensation as it must attract, retain and satisfy both expatriate and local staff. It is important to pay expatriate and local staff to increase their productivity. However, the remuneration should be fair and reasonable so that it can encourage the productivity and loyalty of their international and local employees (Nariz, 2012).ProblemAccording to the interview, Ms. Chi said that the company has different methods and policies rewards to motivate both local and expatriate employees. Expats receive financial rewards such as cash bonuses and plane tickets to return home once or twice a year, depending on their position. However, for local staff, they only receive the basic salary and their bonuses if they have achieved the objectives and goal of the organization on time. The amount received by the expatriate is generally higher than that of local staff because the company wants to maintain the expatriate's standard of living as when they lived in their home country. Therefore, in some cases, local staff who occupy a more complex role still receive a lower reward than expatriates. This unequal reward policy created conflict among staff and affected their performance. Furthermore, unequal pay systems can create more dissatisfaction than satisfaction if local staff perceive...... middle of paper ...... public applause and private thanks are both important because they motivate employees to try harder. better use of their talents to accomplish more challenging work (Armstrong, 2007). Every time an employee achieves the company's goals and brings profits to the company, the company can organize a small party to encourage staff to follow their work and encourage others to follow and learn from the one who succeeded. relationship between expatriates and local staff, the company can change its office structure by moving to an open office. With an open office, the expat and local staff will have more opportunities to bond to develop their relationships, sharing thoughts and ideas about work. In addition, the company can also organize a fun day or vacation that helps employees relax and get to know each other..