Which of the following is an advantage of using the balance sheet approach of compensation?
A) It does not create disparity in pay between expatriates and HCNs.
B) It creates less fluctuation between overseas and parent country pay during repatriation.
C) It is organizationally less complex to administer.
D) It is the cheapest method of managerial compensation for expatriation.

Question

Which of the following is an advantage of using the balance sheet approach of compensation? 
A) It does not create disparity in pay between expatriates and HCNs. 
B) It creates less fluctuation between overseas and parent country pay during repatriation. 
C) It is organizationally less complex to administer. 
D) It is the cheapest method of managerial compensation for expatriation.

Quizplus · Accepted Answer

The balance sheet approach to compensation aims to equalize the purchasing power of employees so that they can maintain a similar standard of living in their host country as they would in their home country. This method helps to minimize fluctuations in pay between the overseas assignment and repatriation to the parent country, ensuring a smoother financial transition for the expatriate.

Which of the Following Is an Advantage of Using the Balance