TM - August 2007 - (Page 29) would not have access to compensation data for employees in those countries. Arrangements can be made to have a local manager act as proxy in compensation decisions. Derogations are another compliance option for organizations managing information globally. Derogations make specific provisions or exemptions for data sharing, and they require individual consent. For derogations to be valid, however, a company cannot require employees to give individual consent, and they must allow individual employees to opt out at any time. As a result, companies need to be prepared to block individual compensation data from being viewed when permission has not been given or is withdrawn. Safe harbor guidelines are another strategy for organizations to meet privacy standards. Safe harbor standards were agreed on by the EU and United States, and they ensure protection of personal data consistent with EU policy specifications. The safe harbor framework offers a clear set of steps to comply with the EU Data Protection Directive. Organizations that participate in safe harbor are required to obtain certification and adhere to its principles. By adopting safe harbor practices in each country in which employee data is accessible, organizations will be deemed compliant and able to share data and conduct business without interruption. Model contracts are another strategy for data-sharing compliance. These contracts contain standard clauses that are accepted throughout the EU, and they require organizations to adhere to established terms before data can be shared, even in the case of corporate subsidiaries. Large organizations might want to consider binding corporate rules to manage the cross-border use of their data. Binding corporate rules are multinational dataprotection standards that a corporate group adopts. In 2005, General Electric was the first organization to be granted permission in the United Kingdom for its binding corporate rules to export data. A benefit to binding corporate rules is the ability to negotiate content, reporting and compli- ance mechanisms with the data-privacy regulators in each country. Many, such as Germany, require local works councils to approve data-privacy regulations, which can extend the time it takes to become compliant. Although there are challenges with managing dataprivacy regulations from country to country, heightened awareness of the various options will enable effective compliance and adherence to varying data-protection requirements. Variations in Compensation Structures and Levels In addition to navigating various data-privacy regulations, maintaining equity globally is another challenge for organizations that operate in multiple countries. Performance-driven compensation already is changing the way organizations align individual, group and company goals to determine business outcomes. By implementing a consistent global HR strategy, organizations can more effectively reward their employees to reach their goals. Although a centralized compensation system might help enforce global consistency, it must be able to accommodate salary variations from market to market — the definition of base salary varies across regions. For example, in Australia, base salary is the guaranteed rate paid to every employee, regardless of Employee Performance Management The right piece, the right fit! Identity Top Performers Reach Corporate Goals Attain Full Compliance Save Time! 972.783.3000 www.hrsmart.com sales@hrsmart.com For a FREE demo visit www.hrsmart.com/FREEdemo http://www.hrsmart.com http://www.hrsmart.com http://www.hrsmart.com/demo_form.html
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