A growing number of companies are shifting to centralised compensation and benefits structures according to a survey by consultants Watson Wyatt Worldwide and WorldatWork, the association for HR professionals.
It found 56% of respondents planning to shift to a more centralised structure over the next two years, up from 42% in 2004. Some 66% have adopted a consistent†international HR strategy.
Bob Wesselkamper, director of international consulting at Watson Wyatt, said: "A centralised global approach to compensation and benefits is necessary for consistency and alignment with company goals, although multinationals should watch how much emphasis they place on consistency. Local cultures and the availability ofresources play a big role, too. The key is finding the right balance, as some programs are best managed globally, while others are best managed locally."