Question 1

In the context of global rewards, what is an advantage of including "nonstatutory benefits" as part of an organization’s total rewards package?

Options :

A : They are universally accepted across countries

B :

They provide flexibility to offer regionally competitive benefits beyond statutory minimums, improving attraction and retention

C : They are mandated by local laws and require minimal customization

D : They decrease the overall cost of benefits

Answer: B

Question 2

What is one of the primary purposes of offering "development and career opportunities" as part of a global total rewards package?

Options :

A : To ensure employees have uniform career paths across all regions

B : To improve retention by offering growth opportunities tailored to individual and regional needs

C : To decrease the focus on monetary compensation as a motivating factor

D : To create a standardized skill set across the global workforce

Answer: B

Question 3

Which of the following factors is NOT typically considered in the creation of an international benefits package?

Options :

A : Healthcare requirements

B : Exchange rates

C : Local employment laws

D : Employee marital status

Answer: B

Question 4

When creating an international assignment policy, the company includes "hardship allowances" for employees working in high-risk or less developed areas. Which of the following best explains the purpose of this allowance?

Options :

A : To increase the base salary to offset currency fluctuations

B : To compensate for the physical and psychological challenges of working in a less desirable location

C : To match the local salary levels in the host country

D : To reward high-performing employees during their assignment

Answer: B

Question 5

In a global benefits strategy, which of the following accurately describes statutory and nonstatutory benefits?

Options :

A :

Statutory benefits are optional and based on employee choice, while nonstatutory benefits are mandatory by law

B :

Statutory benefits are required by local laws, while nonstatutory benefits are provided at the company’s discretion

C : Both statutory and nonstatutory benefits are universally standardized across countries

D : Nonstatutory benefits are mandated by host-country governments

Answer: B

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