There are many significant challenges facing multinational organizations in today's business world. One such challenge for global organizations and the human resources department is to effectively manage employee compensation and benefits packages. Managing compensation structures has become an integral part of many organizations conducting operations in the global market, as there are many considerations for the host country when sending expatriates abroad. It is imperative for organizations to develop comprehensive compensation structures that attract and retain quality employees without hindering operations or diminishing the organization's profits. This paper will discuss the challenges of global compensation structures for multinational organizations and highlight some issues that arise from maintaining a global employee presence. Additionally, this document will discuss adherence, or lack thereof, to various U.S. compensation policies and practices and other globally recognized general best practices. Expatriate Compensation The first step for the human resources department of a multinational organization is to develop a global compensation structure. which includes the “political, social, legal and cultural differences” (Haile & Williams, 2011, p. 25) of the countries in which they operate. Not only is it essential to have factual knowledge of the local nation's best compensation and benefits business practices, but ensuring that everyone involved has cultural sensitivity is often difficult when structuring global compensation packages. The goal of a global compensation structure is to ensure that the organization attracts and retains high-quality employees who are interested in overseas assignments and with...... half of paper ......g the employer out from labor law? Liability for wage and hour violations in an era of business unbundling. Journal of Employee Rights and Employment Policy, 15201. Haile, S., & Williams, D. (2011). Factors influencing expatriate compensation issues. Journal of the Academy of Business Research, 125-32.Kistenbroker, H.V. (2012). Implementation of Article 32 of the Convention on the Rights of the Child as a national statute: protection of children from abusive labor practices. Case Western Reserve Journal of International Law, 44921.Shelton, T. (2008). Global Compensation Strategies: Managing and administering split pay for an expatriate workforce: Multinational companies need an effective and efficient solution to manage, monitor and calculate complex split pay arrangements. Compensation and Benefits Review, 40(1), p. 56-60. doi:10.1177/0886368707312219