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

Question

Quizplus · Accepted Answer

The compensation specialist meeting with each employee to work out an individualized compensation package indicates the use of the negotiation approach to expatriate compensation. The lump-sum approach provides a one-time payment to cover all expenses related to the assignment, the split-pay approach pays a combination of local and home country compensation, and the localization approach adjusts compensation to match local standards. None of these approaches involve an individualized negotiation between the employee and a compensation specialist.

Acme Global Recognizes That Different Employees Have Different Compensation Needs