Figure 15.5, Earnings in Selected Occupations in Seven Cities, identifies how pay structures can differ substantially across countries in terms of both pay level and the relative worth of jobs.
2. The differences in pay level and relative worth of jobs create a dilemma for global companies. Should pay levels and differences reflect what workers are used to in their own countries or should they reflect the earnings of colleagues in the country of the facility or earnings at the company headquarters? Typically, companies have resolved this dilemma by linking pay and benefits more closely to those of the employee’s country.