Free WorldatWork GR7 Exam Questions

Question 1

A company with a strong presence in both developed and developing countries is considering its global pay strategy. Which approach would likely be most effective in attracting top talent globally while balancing pay discrepancies between high-cost and low-cost regions?

A : Offering a flat global salary for similar roles

B : Implementing region-specific salary bands based on local market data

C : Using a standardized pay grade structure with no regional adjustments

D : Basing pay entirely on home country economic conditions

Answer: B

Question 2

A company with a strong presence in both developed and developing countries is considering its global pay strategy. Which approach would likely be most effective in attracting top talent globally while balancing pay discrepancies between high-cost and low-cost regions?

A : Offering a flat global salary for similar roles

B : Implementing region-specific salary bands based on local market data

C : Using a standardized pay grade structure with no regional adjustments

D : Basing pay entirely on home country economic conditions

Answer: B

Question 3

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

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

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?

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

When an organization adopts a "headquarters-based" approach to global compensation, what is one major disadvantage it might encounter?

A : Difficulty in creating standardized pay levels

B : Increased administrative burden due to varying exchange rates

C : Reduced ability to attract talent in local markets due to lack of alignment with local standards

D : Limited access to expatriate talent due to high costs

Answer: C