Acme Global recognizes that different employees have different compensation needs when on expatriate assignments.Therefore, it has a compensation specialist sit down with each employee before the assignment to work out how the employee will be compensated.It appears Acme Global is using the _________ approach to expatriate compensation.
A)lump sum
B)split-pay
C)negotiation
D)localization
E)equalization

Question

Quizplus · Accepted Answer

Acme Global is using the negotiation approach to expatriate compensation by sitting down with each employee before the assignment to work out how the employee will be compensated based on their individual needs. The lump sum approach involves one fixed payment for the entire assignment, split-pay involves dividing the compensation between home and host country, localization involves paying the employee according to the host country's standards, and equalization involves compensating the employee as if they were still in their home country. None of these approaches involve individual negotiation with each employee.

Acme Global Recognizes That Different Employees Have Different Compensation Needs