Global Issues That Are Impacting Compensation in the United States”

Nicole Randall

HRMG 750

Professor Russell

Mercy College

“Global issues that are impacting compensation in the United States”

U.S. business industries are competing in a global labor market. Organizations are outsourcing production and services into foreign countries. With globalization of businesses there are factors to be aware of. These are variance of taxation, political affiliations, currencies and laws in foreign countries that businesses are being established. There are two main factors that are impacting compensation in the U.S. These factors are the difference in tax deductions, rates and the changes in social security and welfare services that are currently being provided (Henderson, 2006).

Unfortunately, there were various events that have occurred in our history that influence these changes in our current economy and impacted compensation. One of these events was the emergence of terrorism on our land, which led to into political conflicts with the some Middle Eastern countries. When Osama Bin Laden plotted and executed an attack on the World Trade Center it not only devastated American society with the loss of lives and property damage it also affected U.S commerce. The attacks affected U.S tourism, airline, and insurance industries.

The World Trade Center attack on Sept. 11, 2001, cost New York City's economy 143,000 jobs a month and $2.8 billion in lost wages in the subsequent three months, a far greater impact than could be attributed to the recession that had begun earlier that year, according to a study to be published by the federal Bureau of Labor Statistics (“Study Confirms 9/11 Impact On New York City Economy - New York Times,” n.d.). There were also foreign businesses that have lost confidence in investing in the United States because of the fear of terrorism and political retaliation due to our conflict with various Middle Eastern nations.

Second, the 2007 credit market crash was the vivacity of the U.S. housing market,...