GPHR GPHR International Total Rewards Questions and Answers 2

Question 1

Which approach to international compensation establishes pay ranges based on the host country's local market rates?

Accepted Answer

Host-country approach

Answer

The host-country approach sets compensation according to local market rates in the country where the employee is working.

Question 2

What is the primary purpose of a cost-of-living allowance (COLA) in an international assignment package?

Accepted Answer

To offset differences in purchasing power between home and host locations

Answer

COLA compensates assignees for differences in the cost of goods and services between their home and host countries.

Question 3

When designing a global benefits strategy, which factor most directly influences mandatory benefit requirements?

Accepted Answer

Host-country statutory regulations

Answer

Mandatory benefits are determined by the statutory regulations of the host country where the employee is located.

Question 4

In a balance-sheet compensation approach, what does the 'equalization' component primarily address?

Accepted Answer

Ensuring the assignee is neither better nor worse off financially than if they stayed home

Answer

Tax equalization ensures the expatriate's overall financial position remains comparable to what it would have been in the home country.

Question 5

Which total rewards element is MOST critical to address when operating in countries with hyperinflationary economies?

Accepted Answer

Frequency and indexing of salary adjustments

Answer

In hyperinflationary economies, frequent salary adjustments indexed to inflation are essential to maintain employee purchasing power.

GPHR - Global Professional in Human Resources Practice Test