Reward strategies now have to do more, go deeper, and flex harder, especially for global employers. Employees want pay that reflects where they live, what they value, and where they’re going.
Compensation is increasingly seen as a reflection of value, security, and future potential. Employees are paying closer attention to how pay aligns with their needs, goals, and cost of living. For employers, it’s becoming more important to ensure that reward strategies support both attraction and long-term retention.
Why global pay keeps you up at night
1. You can’t standardise what everyone wants
Employees want hyper-local, hyper-personalised packages, but your business still needs structure and fairness. Flexibility without chaos is a constant balancing act.
2. Everyone wants data, and no one agrees on the source
You’re under pressure to deliver accurate, specific, and up-to-date global and regional compensation intelligence. But what’s considered “market rate” in one country may not even exist in another.
3. Once pay goes up, it rarely comes back down
Wage inflation is global, but rigid. Salaries set during talent crunches are hard to scale back, especially when the local cost of living continues to rise.
4. One workforce, five generations, multiple locations and no clear consensus
From retirement-age specialists to Gen Z new starters, to employees in Singapore to talent in Hamburg, your people want different things from reward. Crafting a compensation strategy that pleases all is exhausting and often impossible.
5. Gross salary means nothing if net pay disappears
In some countries, taxes and social security can eat up a huge proportion of income. Add currency swings, and suddenly your “competitive offer” feels unfair or unaffordable.
6. The law is changing faster than your spreadsheets
Pay transparency, equal pay audits, and cross-border compliance are increasing. Keeping up isn’t optional.
7. What’s fair here may feel wrong over there
Reward doesn’t translate cleanly. Guaranteed income, incentive-heavy bonuses, and job titles, what motivates one region may feel irrelevant or even offensive in another.
Making global pay work in the real world
Managing pay across borders is complex, but not impossible. These tips can help you make more informed decisions without getting overwhelmed by the noise.
Look at net pay, not just headline salaries
Tax, inflation, and currency shifts can make or break the real value of your offer.
Invest in local intelligence
Generic data won’t cut it. Use in-country partners or specialist recruiters to get the full picture.
Balance global consistency with local relevance.
Create frameworks that flex, think playbook, not a rulebook.
Get ahead of pay transparency laws
Audit your pay practices now, before you’re forced to explain them later.
Design for diversity
Use personas or workforce segmentation to build reward packages that resonate by generation, role, or region.
This insight is an extract from The Strategic Compensation Report 2025.
You can download the full report here.
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