Free WorldatWork GR7 Exam Questions

Become WorldatWork Certified with updated GR7 exam questions and correct answers

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Total 132 Questions | Updated On: Feb 18, 2025

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Question 1

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

Question 2

A company’s expatriate compensation policy includes a "hardship allowance." In which situation is this allowance typically applied?

A : To offset cost-of-living differences in high-income countries

B : For employees in positions requiring high levels of responsibility

C : For employees assigned to regions with challenging living conditions and health risks

D : To support employees transitioning to home-country assignments

Answer: C

Question 3

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 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

Which of the following best describes a "dual pay" approach in expatriate compensation?

A : Paying in the host-country currency only

B : Splitting compensation between home and host-country currencies to address local expenses and maintain savings in home currency

C : Standardizing pay across all expatriates

D : Avoiding local currency use for expatriates

Answer: B

Page: 1 / 27

Total 132 Questions | Updated On: Feb 18, 2025

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