There are various types of pay and reward systems which can be classified as rewards for the employees. Rewards are considered as an important factor in any multinational company as it serves many purposes. They are known to be served to build a better and healthy employment deal, to reduce employee turnover, and to hold on to effective employees. Moreover, the key goal is to upsurge individual’s enthusiasm to work in one’s company in an effective way, to enhance multinational’s and it’s subsidiary’s productivity by the expatriate. Rewards are assimilated with salary raise or incentives, but there are many other ways such as an extrinsic reward. Furthermore, several studies prove that a salesperson prefers pay raises because they mainly feel frustrated by their own inabilities in order to obtain other rewards, thus, this behavior can be modified through applying a complete reward strategy. The operational manager plays a vital role in any multinational’s subsidiary as an expatriate, moreover, the parent country nationals may be expatriated to work in different countries in terms of resourcing business development and operations in that country.

The individual employees sourced from the host country where the multinational sets up operations, to provision the initiative in that authority. The host country nationals tend to work alongside parent country nationals who are possibly occupying positions of superiority in leading regional operations – according to the similar and equal pay for work of equal value principle. Following are the few types of pay and reward systems which are mainly used by the multinational companies in the UK, the adaptation might help to remunerate the expatriate operations managers working in different sites to achieve company’s overall goal.

• Extrinsic Rewards – The extrinsic rewards are one of the types of pay and reward system which 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 – The rewards in the category of intrinsic rewards are considered which gives job satisfaction itself. The feedback is also a significant type of reward that successful and effective managers never ignore or neglect. Recognition in terms of recognizing an employee’s performance with verbal appreciation.
• Financial and Non-financial Rewards – Financial rewards may not enhance the employees’ financial wellbeing, if they do they can directly do this by wages, profit sharing, bonuses, or indirectly through supportive benefits such as paid vacations, pension plans, purchase discounts, or paid sick leaves.
• Performance-Based and Membership Based Rewards – The rewards that the multinational allocate can be known to be based on either membership criteria or performance criteria.