Successfully managing compensation and benefits in a multinational context:

Question

Quizplus · Accepted Answer

Successfully managing compensation and benefits in a multinational context requires knowledge of employment and taxation law, customs, environment, and employment practices of many foreign countries. This knowledge helps organizations to comply with local laws and regulations, avoid legal and tax penalties, and attract and retain employees by offering competitive compensation and benefits packages.

Option B is partially correct as it refers to the two popular approaches to international compensation, but it does not cover the knowledge of foreign employment practices that is required to manage compensation and benefits in a multinational context.

Option C is incorrect as familiarity with currency fluctuations is essential for managing compensation and benefits in a multinational context, as it impacts the cost of living and employees' purchasing power.

Option D is incorrect as a base salary is typically used to determine an employee's compensation package, especially in an international context, where employees may be relocated to different countries and have different job responsibilities.

Successfully Managing Compensation and Benefits in a Multinational Context