HRCI GPHR Exam Dumps

Comprehensive and Detailed Explanatio n:

A local market approach involves aligning compensation with the standards and expectations in the host country. The cost of living is a critical component in ensuring that pay is competitive and sufficient for local lifestyle.

Cost of living varies by region and includes housing, transportation, food, and services

Ignoring this can lead to dissatisfaction or challenges in attracting/retaining local talent

GPHR Study Guide Extract -- Global Compensation and Benefits / Compensation Strategy and Localization:

''In a local market approach, compensation is structured in alignment with local labor market conditions. Key considerations include the cost of living, prevailing wages, and local employment norms.''

Hypothetical tax and mobility premiums are related to expatriate packages, not localization.

Comprehensive and Detailed Explanatio n:

A hardship allowance is provided to compensate for difficult living conditions in the host country. Ongoing transportation interruptions are considered a form of hardship, as they can disrupt daily life and employee productivity.

GPHR Topic Reference:

Global Talent Acquisition and Mobility -- Assignment Allowances and Incentives:

''Hardship allowances are provided when the living conditions in the host country are significantly more difficult than those in the home country.''

Comprehensive and Detailed Explanatio n:

Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on:

Race

Color

Religion

Sex

National origin

It applies to hiring, firing, compensation, and other terms of employment for U.S. citizens.

GPHR Study Guide Extract -- Workforce Relations and Risk Management / U.S. Employment Law:

''Title VII ensures that employment decisions are free from bias based on protected characteristics. It is one of the most significant federal laws governing workplace equality in the U.S.''

ADA (Americans with Disabilities Act) governs disability discrimination. The FCPA deals with foreign bribery, not domestic discrimination.

Comprehensive and Detailed Explanatio n:

The OECD does not enforce legal mandates. Instead, it issues voluntary guidelines that member countries are encouraged to adopt. These recommendations cover corporate responsibility, employment standards, and ethical labor practices.

GPHR Study Guide Extract -- Workforce Relations and Risk Management / International Employment Standards:

''OECD guidelines are voluntary principles and standards for responsible business conduct addressed to multinational enterprises. They are non-binding and are designed to complement existing labor laws and ILO conventions.''

This makes OECD guidelines advisory, unlike ILO conventions, which can be ratified and legally binding.

Comprehensive and Detailed Explanatio n:

Parent-country nationals (PCNs) are often used in conservative or centralized cultures where control, consistency, and alignment with HQ policies are prioritized. Large financial firms typically prefer PCNs for trust, governance, and standardization.

GPHR Study Guide Extract -- Global Talent Acquisition and Mobility / Staffing Approaches:

''An ethnocentric staffing model commonly places parent-country nationals in foreign managerial roles to ensure alignment with the organization's home-office practices. This is especially prevalent in highly regulated, conservative sectors such as finance and banking.''

Other models like polycentric or geocentric are more aligned with flexible or mature international companies.