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Factsheet:

International reward

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This factsheet was last updated in July 2016.

International reward strategy

Although the extent to which money is a motivator is a matter of debate, reward is a key issue in people management. A lot of reward theory focuses on motivation, incentivisation and engagement. This is particularly complicated when looking at the international context of reward within different cultures and institutions - see our international culture factsheet. Although there is some similarity in how senior managers and expats are rewarded, this is less true for non-managerial workers.

Cultural differences may, for example, affect the way employees view the effort-reward relationship and also the perceived attractiveness of various perks or benefits. Researchers have considered the relationship between Hofstede’s dimensions of national culture and the likely preferences found within employees for different aspects of reward, particularly that which is contingent upon individual performance1,2. Institutional factors such as political and legal structures are more influential given the introduction of pay minimums in number of countries and role (or absence) of unions and collective bargaining.

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