Europe’s corporates take on global perspective
Europe's multinationals are reporting the effects of globalisation with over half changing their pay structures and strategies to cope with the effects of global commerce.
The study, by Mercer Human Resource Consulting, reveals that 57% of Europe's multinationals will focus on job evaluation and employee incentives - such as basic salary and bonuses - over the next two years.
"When companies turn global their cost and pay structures become far more complex. Costs can soar if they are not managed tightly across the organisation," says Mark Edelsten, a European partner at Mercer. "Low inflation and poor corporate performance has put pressure on financial rewards this year. Companies can't afford to give employees the pay increases they awarded during more profitable years."
Global strategy is also high on the priority list. Virtually 50% of respondents view the production of global products to local markets as part of their strategy, as is training a competent workforce with the skills to cope with challenges in different countries.
Edelsten adds: "Global companies know they can't take a segmented approach to business. They need staff with an overview who can see how changes in one area will impact on the rest of the organisation."