By offering unique products and/or services that create opportunities in countries by making certain that the MNCs’ IHRM policies, programs, and practices are consistent with product attributes and brand names as well as the needs of local consumers. For example, an MNC that values new and innovative product development might create novel total reward systems that effectively motivate employees by recognising and rewarding those who share ideas for how to develop new products.

By making sure that the right people are assigned to international operations. For example, when assigning employees to work in foreign nations, MNCs want employees who are sensitive to numerous cultural norms and open to non-traditional ways of approaching work-related problems.

When compensation and benefits policies lead to fair processes and outcomes, employees are likely to have higher levels of job satisfaction, higher levels of job performance, and are more likely to remain with their MNC.

First, pension plans and saving and investment plans are more difficult to manage between countries due to variations in national rules and regulations. Second, there is also very little portability of retirement plans and health insurance programs. Third, required benefits arising from national labor or employment legislation such as workers’ compensation plans have no applicability in foreign environments.

In a domestic setting, the term base salary refers to the amount of pay (e.g., hourly pay or salary) that employees earn on a regular basis for performing their jobs.  By comparison, in an international setting, the term base salary refers to either the comparable pay that an employee receives for performing the same job in his/her home country or the amount of pay that an employee would receive for performing the job in the host country.