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Tips to localize your global compensation and performance management processes

by Jeremy Masters

February 9, 2011

This HR tip comes directly from the presentation I will be delivering next month at the HR 2011 conference, March 8-11 in Las Vegas, NV (www.hr2011.com). Performance and compensation management are two of the most global processes within HR. Localization is a major part of success after go-live.

There are 4 common components of localization

  1. Language
  2. Master data
  3. Data privacy
  4. Local legislation

1. Language

Language often an important localization item during implementation of compensation and performance management processes

Some local dialects/idioms, including:

  1. ?  French from France versus Canada
  2. ?  Spanish from Latin America versus Spain
  3. ?  English from US versus UK

Looking at the Compensation Worksheet, some of the questions to ask: Does the worksheet need to be multi-language? If you have a global organization, do all managers (including lowest-level managers) know English?

Let's also take the Compensation Statement. Example: Charter of the French Language (La charte de la langue française,  also  known as Bill 101 and Loi 101. This is the central legislative piece in Quebec's language policy. The preamble of the Charter states "to make French the language of Government and the Law, as well as the normal and everyday language of work, instruction, communication, commerce and business". ?In Canada, French Canadian may need to be available for Quebec residents

Another example includes the Performance Appraisal with such items as:

  1. Form text/instructions in what language(s)
  2. User enters language in free-form text areas
  3. Spell checker
  4. Legal checker

 2. Master data

Understanding master data is often an important part of localizing HR processes such as performance and compensation management

 Common Localization of Master Data

  • Grade
  • Base pay
  • Working time %
  • Costing
  • Dates (hire date, rehire date, service date, etc.)
  • Manager (chief)
  • Org unit, position, and/or job
  • HR Generalist assignment

You should also consider implementing a data cleansing process, which I will talk about during my session in Vegas.

 3. Data privacy

Data privacy has huge implication to localization. For example, there is much sensitivity with data in Germany, Austria, and other countries. Open disclosure of employee indicative data, including compensation data, as well as PII (Personally Identifiable Information) are important topics.

PII refers to information that can be used to uniquely identify, contact, or locate a single person or can be used with other sources to uniquely identify a single individual. Potential PII referes information that could be combined with other personal information to identify an individual.

4. Local legislation

Localization due to the laws and/or influence of local legislative bodies. Good examples include works councils, national agreements, collective barga ining, etc.

A Works council is a "shop-floor" organization representing workers, which functions as local/firm-level complement to national labor negotiations

This... and more... we will discuss in my session in Vegas. See ya there!

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