The balance sheet approach to compensation refers to designing pay systems that equalize the purchasing power of employees at comparable positions living overseas and in the home country.

Question

Quizplus · Accepted Answer

The statement is correct. The balance sheet approach to compensation ensures that employees' purchasing power is maintained irrespective of their location by adjusting their salaries, benefits, and allowances based on cost of living, taxes, and exchange rates between the host country and the home country.

The Balance Sheet Approach to Compensation Refers to Designing Pay