Compensation is defined as the remuneration that is given to the employee along with the benefits that the company provides to the employees. These are found to be distinctive in each culture. According to Hofstede cultural model, there is medium level masculinity index. Masculinity index is the index of competitive and aggressiveness that is followed by the people to achieve success. In this, the society is driven by the achievement and success. The job market has shifted in India . The compensation is not only the salary that is offered to the employees. It is considered to be a combination of the salary and other fringe benefits that are offered to the employee. These include the retirement benefit and long term job security. The compensation is found to be based on the value that the company provides to the employees.
In the case of China, there is high level of masculinity index according to Hofstede index. The people in general want high rewards. The compensation package that is offered to the employees matters a lot to the people. It is measured as a term of success. Hence, it is important to offer the Chinese employees high competitive salary based on the high quality. The people in China, similar to that of India, also expect fringe benefits when compared to the salary of the people
In general, in these two nations, there is compensation and benefits that are provided by the private companies which are similar to that of the governmental companies. There is however less job security. The people are willing to settle for a job with higher security rather than the compensation.