In a World of Pay: Human Resource Management

Essay by esawayaUniversity, Bachelor's April 2008

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Pay rates have always been an important issue when it comes to hiring workersespecially when dealing with professionals whose talent and experience are highly soughtin the job market. In our case study, we will be discussing the difficulties and challenges of hiring expatriates which in this case will be revolving around pay. The case is about theproblems that arose at a German software Company (Typware) when the managementdecided to hire Anne Prevost whom they consider to be an 'intelligent careful strategist.'Anne is generally agreed to be the perfect match for the job but the rate which Anna isrequesting for the job is causing controversy at Typware because some other workerssuch as Jurgen Mehr (Head of Typware European Marketing) feel threatened by theamount the new hire will be receiving.

Case DescriptionThis case illustrates a german software company's inability to effectively compile afair compensation package for the hire of an american ex-pat.

Renate Schmidt, the headof human resources at typware, is faced with a dilemma of how much to offer AnnePrevost. Thomas Gutschein, the CEO of typware, has made it clear that Anne is a neces-sary strategic acquisition. Many managers, including the European head of marketingJurgen Mehr, have expressed discomfort and/or threatened by the high salary proposedfor Prevost. Schmidt has no reference in determining a fair ex-pat package as this is therst time in Typware's history that they hire an outsider to work at HQ. Schmidt facesproblematic issues, one being that Typware does not use a uniform pay scale and overthe past decade many executives have received up to 30 percent extra salary based ongeographical circumstances. Having researched the employee salary les and not ndingany help from them, Schmidt calls in a favor from Rainer Barth. Barth, her contact at aconsulting rm, helps her compile a list of questions that need...