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Rewards and Benefits Management


Wage rates, cost of living and labor regulations are additional factors that determine the compensation structure. Employees’ work habits and expectations of rewards are based on cultural norms and values in each country, which need to be addressed when designing an appropriate compensation package. Most importantly, formulating a good compensation plan calls for a holistic view of employees as human beings and as employees, as well as considering the cultural background of the destination country.

There are a variety of rewards and benefits that can be supplied to employees in foreign countries. Rewards and benefits must consist of a mixture of both monetary and non-monitory packages to provide a holistic approach to rewarding employees (Kadir et al., 2019). For employees working in Mexico, the rewards and benefit packages shall prioritize healthcare benefits as the most essential need for the employees. Nevertheless, Guaranteeing access to medical, dental, or vision care services gives employees the privilege to enjoy healthcare benefits as a priority in the reward structure. Most importantly, such coverage plans give employees the confidence to work in foreign countries as they adopt a unique way of life and unfavorable climatic conditions.

The implementation of the Employee Assistance Program (EAP) is also a fundamental rewards and benefits package for my foreign country’s employees. EAPs provide confidential counseling, mental health support, and resources to help employees manage personal and work-related challenges (Langlieb et al., 2021). In foreign countries such as Mexico, EAP can aid employees facing communication and logistics challenges in their day-to-day activities. Therefore, with the implementation of an EAP program in a foreign country, employee well-being and productivity are guaranteed. Another significant reward is offering paid time off. The time-off package consists of vacation time, holidays, and sick leaves that allow employees to rest, rejuvenate, and maintain a healthy work-life balance.

Besides the implementation of the EAP program, retirement plans are also excellent employee reward and compensation packages. Retirement benefits such as pension or employer-contributed savings plans are essential for long-term financial security (Kadir et al., 2019). The plans help employees save for retirement and secure a stable future.

Total Rewards model

Fixed benefits package/fixed bundle

Employee rewards programs can be classified into a fixed benefits package and a flexible bundle. A flexible bundle would be most recommended as it provides personalization and can enhance attraction and retention. However, this may be complex to formulate due to the varying nature of the affiliated costs. However, for this case, where employees may not be motivated to move to the foreign country in question, such as Mexico, a flexible bundle is the best fit.

Figure 1: A total rewards model

A total rewards model

Benefits of plan/decisions

Monetary Rewards

The total rewards model in Figure 1 below integrates various forms of employee compensation benefits. They include monetary, non-monetary and employee compensation benefits. The total reward model serves to show acknowledgment and appreciation for employee contribution to the organization (Langlieb et al., 2021). A competitive basic salary and performance-based incentives allocated based on performance are monetary rewards to recognize individual and team efforts. Besides, basic salary is guaranteed regardless of employee performance. Nevertheless, the monetary reward is meant to motivate and encourage employees to perform even better.

Non-monetary rewards

In Figure 1 above, non-monetary rewards are in the form of recognition and appreciation, career development opportunities, and work-life balance. The organization in the foreign country will achieve recognition and appreciation through training programs and awards to boost employee morale and show appreciation for their great efforts in the organization. Uploading the recognition moment on the organization’s website will help employees acknowledge their value in the organization. Career development opportunities also form part of the non-monetary package. The organization will achieve this by offering multiple avenues for career progression, mentoring programs, and training initiatives that give employees the freedom to improve their skills and grow within the organization. Work-life balance is the third aspect of the non-monetary package. By advocating work-life balance in organization policies and programs, workers gain the privilege to work remotely or engage in training programs to develop their skills when working remotely.

Healthcare benefits/retirement plans and support programs

As notable in the total rewards model above, healthcare benefits form part of the recognition and appreciation model. The healthcare package will guarantee medical, dental and vision care benefits to all employees in the organization. Retirement plans will give employees the opportunity to save a percentage of their basic salary to secure a stable future. Support programs will include the implementation of social support groups for employee welfare and individual family challenges.

Compensation aspects

Any compensation plan has its pros and cons. The benefits of this compensation lie in its holistic view. This covers both financial and personal well-being needs. While money is a good motivator, it cannot entirely motivate employees when other aspects of their welfare, such as flexible working hours, appropriate/fair salary allocation, adequate healthcare benefits, and continuous career development, are not under consideration (Zhenjing et al., 2022). This plan advocates for flexible working hours, paid time off, a fair basic salary, and adequate healthcare benefits for all employees, regardless of race, age, gender, or cultural background. Additionally, base selection for any plan helps to stipulate the key base rates to be followed. It is crucial to keep the compensation as per the country. Thus, it means that the compensation will be in hourly base selection, which is the system used in the parent country, as this will aid the employee in comparing these rates effectively.

Comparison with competitor compensation structure

It is important to consider how the elements of the compensation structure compare with the competitor structures of the destination country. The elements of compensation in this plan do not differ much from that of competition in Mexico. This is because Mexico is a neighbor to the parent country and shares an extensive culture. However, certain elements such as the number of days off, flexible working hours, and remote working plans are not readily available in Mexico, which gives the plan a competitive edge.

A tool such as benchmarking will form a constructive part of the plan’s decision-making. Benchmarking will help to position the plan among the organizational competition. It will also help to come up with exact figures in terms of salary base and days off as compared to the cultural underpinnings of the host country. This is important in enabling employees to adapt smoothly to the culture of the host country.


Employee rewards and benefits form a crucial part of hiring and retaining talented employees. They are the most significant elements that determine where employees choose to work and stay, especially for expatriates. Sending employees on international assignments comes with mixed reactions depending on the destination. For a country such as Mexico, it is crucial to make a total rewards program that is holistic to its core and competitive towards the competitive needs of the employees. Considerations such as cultural practices must be factored in through benchmarking.


Kadir, A., AlHosani, A. H., Ismail, F., & Sehan, N. (2019). The effect of compensation and benefits on employee performance. In Proceedings of the 1st Asian Conference on Humanities, Industry, and Technology for Society, ACHITS 2019, 30-31 July 2019, Surabaya, Indonesia.

Langlieb, A. M., Langlieb, M. E., & Xiong, W. (2021). EAP 2.0: reimagining the role of the employee assistance program in the new workplace. International review of psychiatry (Abingdon, England)33(8), 699–710.

Zhenjing, G., Chupradit, S., Ku, K. Y., Nassani, A. A., & Haffar, M. (2022). Impact of Employees’ Workplace Environment on Employees’ Performance: A Multi-Mediation Model. Frontiers in public health10, 890400.


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