Scenario 11.1
ABC company,a domestic (Canadian)manufacturer of road and mountain bicycles,has recently expanded operations in its Italian business unit in response to the continued high demand for its products from international buyers.To meet this demand,the executives of ABC Company are recruiting internally for a high performing manager to serve as an expatriate in their newest overseas operation.They have identified Doug-a quickly rising star in their domestic operations-for this assignment.Doug is strongly considering their offer,and has already talked to his family about this opportunity.
-Please refer to Scenario 11.1.If Doug's assignment was considered to be short-term or project-based,what is the best method for ABC Company to use for Doug's compensation?

Question

Quizplus · Accepted Answer

If Doug's assignment is short-term or project-based, it would be best for ABC Company to use per-diem compensation. This type of compensation provides a fixed daily allowance to cover food, accommodations, and other expenses while on an assignment. It is a cost-effective way to compensate employees on short-term assignments and allows companies to avoid the additional expenses associated with host-based pay, such as benefits and payroll taxes. Additionally, it allows the employee to maintain their home-based pay and benefits, ensuring that they do not experience a significant disruption in their compensation and benefits package.

Scenario 11.1 ABC Company,a Domestic (Canadian)manufacturer of Road and Mountain Bicycles,has Recently