CH 6

Question 1

International employees

Answer 1

employees are foreign nationals or expatriate Canadians

Question 2

Contingent workers

Answer 2

EE’s not full time permanent

can be hired for high skilled work or to do the regular work, cover vacations, leaves etc.

Question 3

Utility Analysis

Answer 3

a method used to analyze whether a lag, lead or match compensation level strategy is needed.

Question 4

Lead, Lag or Match market decisions

Answer 4

Lead (pay above average) consider poor non compensation rewards like association, reward dissatisfaction etc.
Lag (pay below average) do indirect benefits exceed market?
Match (pay average) play it safe - remain cost competitive without having excessively high wages.

Question 5

Compensation strategy formula (5)

Answer 5

Define the required behaviour (task, membership, citizenship)
Define the role of compensation (intrinsic/extrinsic rewards)
Determine the compensation mix (base pay, indirect, performance)
Determine the compensation level (lag, lead, match market)
Evaluate the proposed strategy (assess the impact of plan - affordable, legality, equity, EE attraction)

Question 6

Constraints of a Compensation Strategy

Answer 6

Strategy is the plan for the mix of base, performance and indirect pay

Legislation (hr/trade union)
Labour Market
Product/Service Market
Financial

Question 7

Approaches to expatriate compensation (4)

Answer 7

(1) balance sheet standard of living comparable to home
(2) negotiation - mutually accepted rate
(3) localization - same as locals
(4) lump sum - home country currency.