Offshore employees (expatriates) working abroad are an important part of any organisational workforce, working and competing globally. The specific requirements of expatriates are quite different as compared to the local workforce of that particular company. These requirements range from base salary to the educational needs of their families, children, and spouses. The employers especially working in multi-national companies (MNCs) face challenges of satisfying and rewarding such diversified work force keeping in view of their wide-ranging requirements. No single reward package is identified as a part of HR Compensation Practices fulfilling these diversified needs. A combination of Cafeteria and Localised Approach is suiTable for addressing this problem. Factors that affect the Expatriate Compensation in motivating and retaining their offshore employees have been identified and their implication is discussed. Repatriation is also a challenge for the MNCs regarding their employees coming back to the home country. This study is valuable for both policy makers and industrialist for making strategies.