Handbook of Human Resource Management in Emerging Markets
Show Less

Handbook of Human Resource Management in Emerging Markets

Edited by Frank Horwitz and Pawan Budhwar

Bringing together a diverse set of key HRM themes such as talent management, global careers and employee engagement, this remarkably wide ranging work on managing human resources in more than 20 emerging markets is written by world-leading experts in HRM in emerging markets and based on leading-edge research and practice.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 13: Compensation and total rewards: trends in emerging markets

Jaime Bonache and Carmen Paz-Aparicio


Expatriate remuneration has traditionally been the focus of the literature on international compensation (Lowe, Milliman, De Cieri and Dowling, 2002). There is no doubt that the design of an expatriate’s compensation package is of the utmost importance in multinational corporations (MNCs) directly investing in emerging markets, given the visibility of these employees, their cost, and their strategic role in such enterprises (for a recent review of this topic, see Bonache and Stirpe, 2012). Nevertheless, this does not mean the subject in any way exhausts the field of international compensation for those corporations. Quite the contrary, in fact, as the bulk of compensation decisions and costs involve local or domestic personnel. The way of remunerating domestic personnel from emerging markets is a strategic decision for numerous reasons, including its impact on costs (Gerhart, Rynes and Fulmer, 2009), its influence on staff engagement and motivation (Prendergast, 1999) and its ability to attract and retain more highly skilled employees (Lazear, 1986). The compensation of domestic personnel from emerging markets (as opposed to expatriates) is therefore not only an important subject but also one that has been underexplored. Even when demarcated in this manner, the subject is vast, given the large number of areas that may fall within the category of ‘Compensation and Total Rewards’ for domestic personnel. This chapter will focus on the examination of a limited number of areas, specifically: issues related to monetary remuneration, individual pay for performance (IPFP), group incentives, and pay disparity.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.