An Exploratory Study of Compensation Management of International Organizations: Focused on the UNMCK Case

Abstract

This paper compares the UN organization's employee compensation system to Korean government officials' wages, focusing on fairness perceptions among UN-affiliated employees. It analyzes how the International Management Committee's decisions on the compensation level of the UN Memorial Cemetery in Korea (UNMCK) influence employee expectations. Factors like work valuation, capacity, achievement, and pension payments shape fairness perceptions. The study highlights the importance of considering job types in cross-country pay comparisons and emphasizes assessing expertise in reference group formation. Findings reveal UNMCK employees' remuneration exceeds agreed levels for Korean officials due to recruitment methods, rank determination, and wage increases. Critical insufficiencies in severance pay regulations, provided without individual contributions, are noted. The paper recommends a new, fair, and rational compensation system, emphasizing transparency, accountability, and audit practices within extraterritorial jurisdiction. Further research on international organizations' human resource management, aligned with the Korean government's strategies, is proposed for talent attraction and management. In conclusion, the study underscores the importance of a fair UN compensation system, offering implications for international organizations and APEC member economies, emphasizing transparent and accountable compensation systems and effective governance.