Question

Explain how balancing the interest of global and local occupational and functional perspectives may play out...

Explain how balancing the interest of global and local occupational and functional perspectives may play out in a compensation decision scenario?

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Answer #1

There are two major solutions to the matter when discussing expatriate compensation: the Going Rate Approach, and the Balance Sheet Approach. For the Going Rate Approach,the base pay for the overseas contract is linked to the host country's wage structure. With the Balance Sheet Approach, which is the most widely used approach in international compensation situations, the base salary is linked to the salary structure of the respective home country. The Balance Sheet Strategy seeks to preserve living conditions in the home countries, plus a financial plan to make the offer appealing

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