Asked by Pamela McCauley on Sep 23, 2024
Verified
Pete Miller is from Texas. He has been asked by his American-owned employer to manage a bank branch office in Hong Kong for three years. Miller will be paid:
A) what a manager at the same pay grade in Hong Kong would be paid without regard to nationality
B) what he was paid to perform the same job in the U.S.
C) a standard rate that is paid to all the expatriate employees of this company
D) a pay level comparable to his colleagues plus compensation for the cost of international service
E) what a manager in the banking industry at the same pay grade in Hong Kong would be paid
Expatriate Employees
Workers who are residing and working in a country other than their native country, often for international companies.
Pay Grade
A range of pay rates defined by a company to compensate employees performing a similar level of work or responsibilities within the organization.
American-Owned Employer
A business entity that is owned by individuals or entities based in the United States.
- Acquire knowledge on the fundamentals of total compensation and its constituents.
- Understand how organizational and market dynamics influence the formulation and strategy of compensation.
Verified Answer
GB
Gurnoor Bedwal2 days ago
Final Answer :
D
Explanation :
The most common approach for companies is to offer expatriates compensation comparable to their colleagues in the host country (+/- an adjustment for cost of living differences) along with additional compensation for the costs of international service, such as housing, travel expenses, and tax equalization. Therefore, D is the most appropriate option.
Learning Objectives
- Acquire knowledge on the fundamentals of total compensation and its constituents.
- Understand how organizational and market dynamics influence the formulation and strategy of compensation.