(Solved Homework): A World of Difference In this discussion, choose any country other than the United States and research at least one article concerning any

A World of Difference

In this discussion, choose any country other than the United States and research at least one article concerning any issue related to compensation in that country. Respond to the following:

Compare and contrast pay and benefit structures between your chosen country and the United States. Explain how these differences or similarities can be leveraged for individual and organizational performance.

Expert Answer

 The country chosen to highlight the issues with compensation structure is India. The issue is due to the complexity and breakup of the compensation into multiple components due to the employee laws, tax deductions etc. The process of filing tax exemptions is also tedious and complex. The compensations structure is not common across the private firms and governmental organization.

Below is a comparison of the pay structure between India and the US –

India – Pay structure consists of Basic pay, various allowances like housing, transportation etc., variable bonus, joining bonus(if any), insurance etc.

US – Pay structute consists of Basic pay, Allowances, Bonuses, Stock options, Incentives, Insurance, vacation benefits etc.

The pay structure in US has a wide range of benefits covered with fewer limitations compared to Indian pay structure. Also, the pay for US employees for the same work is much higher and the fringe benefits value higher as well.These points can be highlighted and leveraged for individual performance in an organization and overall organization performance in turn.

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