It exists a disparity in terms of salary between
what offer MNCs and local companies. It is known that an MNC pays higher
salaries to its employees than local businesses, this affects how employees
work in the company, salary is one of the most influential factor in term of motivation
(Paul, 2013). Local companies may struggle to pay competitive salaries of MNCs.
Another disparity is the date of salary payment, a multinational company pays
salaries on time to their employees, rather than in local companies sometimes.
This reduces conflicts who can occur between employees and employers (Paul,
2013). It is often possible that the salaries are not paid on time in local
companies, they do not use the same tools and systems as MNCs, the organization
is mostly less efficient in local companies than multinational ones. The salary
can even be paid in installments throughout the month in local companies. Stock
options are also often proposed to MNCs employees, if the growth of the company
is important it is a real plus for the employees. It can happen than local
companies may give stock options to its employees but it does not really
happen, most of the local companies rarely can give this type of gratification
to its employees. Along with the salary,
what differentiates MNCs and local companies is the opportunities, it can be
about career growth or work committee.