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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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INTERNATIONAL HRM CASE STUDY PART 2

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Q Put together a compensation plan along with a balance sheet (see example I week 5). Assume that the base salary of a manager in the U.S. is $5500 a month. You may need to do some additional research to find out what taxes are in Florence, what is a typical housing allowance, and cost of living. Your balance sheet should reflect monthly amounts.

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Balance Sheet Approach to Compensation (All amounts are in Dollars) Home Country (USA) Host Country (ITALY) Base salary 5500 5500 Housing allowance 500 650 (housing expensive in host country) Health insurance 350 (health insurance comparatively cheaper in-home state) 450 Contribution to 401 K 550 550 Vehicle allowance 1000 1200 (comparatively costlier in host country) School tuition for children NA 500 Yearly return to home country NA 300 Income taxes 30% = 1650 23%=1265 Overseas premium NA 15%= 825 Total cost of employee 9550 11,240