A benefit system could be explained as a major type of pension plan in which the employer promises a staff or employee a specified

monthly benefit on retirement and this is predetermined by a formula which is based on the employees earning history (Steinhoff, 2003), tenure of service and age rather than depending on investment returns. Benefit system or compensation can also be explained as all the rewards earned by an employee in return for their labour, now these may fall into different categories, they: Direct financial compensation: this consist of pay received in the form of wages or salary, bonuses and commissions provided at regular and consistent intervals. Indirect financial compensations: includes all financial rewards that are not included in direct compensation and can be understood to form part of the social contract between the employer and the employee such as benefits, retirement plans and employee services. Non-financial compensation: consist of career development like promotions, advancement opportunities, recognition and favourable work environment. The design process is started by identifying the desired outcomes and goals of an organisation or firm, this is usually referred to as developing your compensation philosophy, this philosophy is formed by considering the number of factors, the balance of direct and indirect rewards, the complexity and responsibility of a role and the employees filling it as well as their focus on internal versus external equity are just few factors explored in compensation. Benefit system or compensation and benefit system has become an integral part of human resource management and this trend is often driven by the changes in the global economy market due to legal and market forces and the need for critical thinking and to remain competitive. Firms use this system of benefit system to compensate employees who can perform an important role in the firms effort to maintain and gain a competitive advantage and to also achieve its main objectives. Effective design of the compensation system carries a central role in attracting and maintaining a qualified, motivated and productive labour force and in advancing the business objectives of the firm (Beam et.al 2001). Firms usually adopt this system to attract, retain, and motivate their labour force to meet up the companys objectives. Today, humans are seen as a companys assets so companies need to efficiently and effectively manage their employees. Now, qualified employees are not willing to work for cash alone, employees seek or expect an extra, this extra are the benefits the company offers, these benefits helps the employee and also the company, to the firm, a well-designed compensation plan will benefit the firm when the firms employees are satisfied with their jobs and are happy working for the firm in exchange for fair rewards. This keeps the employees motivated and will work harder in other to gain an achievement

with the firm or to reach self-satisfaction to gain promotion, this boost up the firms productivity level. While determining effective benefits, the uniqueness of each employee must be considered by the firm, every employee might have a different reason or need to work, the most appropriate benefit will meet these individuals needs, to a large degree, adequate or fair compensation is in the mind of the employee. A good benefit strategy includes a balance between internal equity and external competitiveness, compensation and benefits affect the productivity and happiness of the firms employees as well as the ability of your organisation to effectively realise its objectives, it is to the firms advantage to ensure that your employees are creatively compensated and knowledgeable of their benefits. In compensation, fairness or equity is mentioned as the key component in creating a successful benefit system; this system can be explained in three ways: Work place equity refers to that perception that all employees in a certain organization are being treated fairly External pay equity happens when employees in an organisation perceive that they are being rewarded fairly in relation to those who perform similar jobs in other organisations Internal pay equity take place when employees in a firm perceive that they are being rewarded fairly according to the relative value of their jobs within a firm Perceived inequity either internal or external can result in low morale and loss of organisational effectiveness, for example, if employees feel they are being compensated unfairly, the employees may restrict their performance or their efforts, in some cases even leave the firm damaging the firm overall performance. In the given case study the problems that Telequip Australia faced was that they failed to provide Andrew Robinson, this being one of the problems, the organisation failed to provide their expatriate with the sufficient support for the employee to carry out his international assignment, for example, Andrew was forced to use his private credit card to pay for his expenses, that is an unfair move by the Australian organisation and this was a short term assignment which in (Dowling and Welch) explained this to be a duration of twelve months, without proper company support the expatriate will find it difficult to adjust to the new environment just like Andrew did. Another problem faced was that Telequip Australia failed to provide Andrew with an accommodation; it is part company benefits to provide its employees on international assignments with the necessary essentials like accommodation, some companies even go further to provide a means of transportation, this will make the employee even happier to work for the organisation. The organisation did not resolve the

issues surrounding expatriate management in the subsidiary of a multinational enterprise rather than the more typical headquarters perspective, the subsidiary is trying to expand its mandate and take on product responsibilities (Delany 2000). There was no evidence in the case that Andrew and his associates where trained for the international and so can help but raise the question if they are perfect for the international assignment. The employees in the case did not get any pre-departure training usually done by the organisation, lack of such training can easily lead to expatriate failure, for example, in the case, Andrew was not familiar with the Chinese language and has no idea how to about communicating in the foreign country, this a failed benefit. Although the company promised Andrew and his associates the same salary as their home country and a bonus per diem on top of his normal salary, this is not a very good compensation since according to a survey by the PWC, home country salaries delivered through the home country payroll are the norms of a short term assignments. Telequip failed to transport Andrews family to Taipei this will might demotivate an employee if the employee stays away from his or her family, this is another problem that the Australian company failed to administer. Andrew and his colleagues went through an amount of stress which is a part of expatriate experience, but not with standing, the stress level faced by Andrew was of high calibre, as an expatriate the employee on international assignment should have to undergo high stress levels, the company also neglected to provide their international employees with timely relocation or logistical assistance, as mentioned earlier, the employee found his own residence, used his personal credit card to make payment and even went further to enrol himself in a Chinese course, all at his own expenses and initiative, this is a failed compensation tactic by Telequip. Due to lack of good compensation, repatriation could be an issue in the context of traditional assignment, this turned out to be a devastating event since theirs was as a result of failure, and this was traumatic for the Australian employees. it was flexible for the company to relocate its employee in a short time frame, this meant the company could quickly respond to their needs in Taiwanese customers, short term assignments are seen as less costly assignments than the traditional assignment, some cost such as relocating the family are avoided all together, and cost was saved in terms of duration of the assignment; being a short term assignment. The company failed to realise that the employees will need a high degree of support from the home company in making their cross cultural adjustment, yet short term expatriates may not receive the support and preparation that a more standard practice in the situation of a more traditional assignment, the perception may be that due to the short time duration, that sort of assistance is

seen as not to be required. This can be said as another failed benefit or compensation system exhibited by Telequip Australia. In other for these problems to be solved, the company has to engage themselves in pre departure training for their employees who go on international assignments like Andrew, the company also has to improve their compensation, like paying off hotel bills of employees and taking care of all important expenses of the employee on the international assignment and extra bonuses should be given. The employee also should not be allowed to pay double taxes, that is his home country tax and the tax of the foreign country in which he or she is being sent to.