This paper examines the compensation components available to employees of U.S. companies assigned to foreign work sites. Drawing on established compensation management frameworks, it categorizes benefits into five major segments: loss of job income continuation, disability income continuation, accident and health protection, liability and property protection, and prerequisite services. The paper details specific plan types within each category — including long-term and short-term disability, deferred income vehicles such as 401(k) and stock option plans, and health coverage models ranging from free-for-service to managed care — explaining how each component supports employees' financial security and well-being while working abroad.
The compensation components offered to an employee of a U.S. company who has the opportunity to work at a foreign work site are typically delivered through some form of insurance plan. An equally important set of components is non-insurance based and provides direct income support to employees at a foreign work site. According to established compensation management frameworks, these benefits can be classified into five major segments:
Each category contains various compensation components with distinct features tailored to the needs of a U.S. employee working at a foreign work site.
Disability can be categorized as temporary, singular, partial, or total. When an employee is unable to work due to a health-related problem or an accident, disability income continuation payments help the employee maintain his or her current lifestyle without major disruption. A number of income continuation components offer monthly or weekly payments in lieu of a normal paycheck (Goel, 2008). There are eleven components available in disability income continuation plans:
These plans help employees during shorter periods of unemployment caused by contract termination or layoff. This group has eight main compensation components:
An employee of a U.S. business working at a foreign work site also desires financial security after completing a successful career. Over the years, employees can establish several compensation components to help meet future financial goals and accumulate capital. These deferred income and retirement vehicles include:
"Insurance services covering medical and surgical costs"
"Shift from fee-for-service to managed care models"
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