Various types of pay and reward systems can be classified as employee rewards. Rewards are important in any multinational company as they serve many purposes. They are known to be served to build a better and healthier employment deal, to reduce employee turnover, and to hold on to effective employees. Moreover, the key goal is to upsurge an individual’s enthusiasm to work in one’s company effectively to enhance the multinational’s and its subsidiary’s productivity with the expatriate. Rewards are assimilated with salary raises or incentives, but there are many other ways, such as extrinsic rewards. Furthermore, several studies prove that salespeople prefer pay raises because they mainly feel frustrated by their inability to obtain other rewards; thus, this behavior can be modified by applying a complete reward strategy.

The operational manager plays a vital role in any multinational subsidiary as an expatriate; moreover, the parent country nationals may be expatriated to work in different countries regarding resourcing business development and operations.

Types of pay and reward system

The individual employees are sourced from the host country where the multinational sets up operations to provide the initiative in that authority. The host country nationals tend to work alongside parent country nationals who may occupy positions of superiority in leading regional operations—according to the similar and equal pay for work of equal value principle.

The following are the few types of pay and reward systems that are mainly used by multinational companies in the UK. The adaptation might help to remunerate the expatriate operations managers working in different sites to achieve the company’s overall goal.

• Extrinsic Rewards – Extrinsic rewards are one of the types of pay and reward systems that include promotions, money, and fringe benefits. The extrinsic rewards are commonly known as the external to the job and received from an outside source such as management.
• Intrinsic Rewards—Intrinsic rewards are considered to be those that give job satisfaction themselves. Feedback is also a significant type of reward that successful and effective managers never ignore or neglect. Recognition is in terms of recognizing an employee’s performance with verbal appreciation.
• Financial and Non-financial Rewards – Financial rewards may not enhance the employees’ financial well-being. If they do, they can directly do this through wages, profit sharing, and bonuses or indirectly through supportive benefits such as paid vacations, pension plans, purchase discounts, or paid sick leave.
• Performance-Based and Membership-Based Rewards – The rewards that the multinational allocates can be known to be based on either membership or performance criteria.