Thehome-based paystructure keeps expatriates' compensation tied to their country of origin, often using a balance sheet approach that maintains living standards consistent with their home country. This can make it difficult to transition these employees to local salaries, particularly if they've been on assignment for a long time and have grown accustomed to higher compensation levels.
GPHR Topic Reference:
Global Compensation and Benefits – Expatriate Compensation Approaches:
“Home-country-based balance sheet approaches can create long-term inequities and hinder the ability to transition expatriates into localized roles.”
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