Comprehensive and Detailed Explanatio n:
A home-country-based balance sheet aligns pay with the employee’s home market, but in
multinational settings, this can cause inequity among expatriates from different countries.
For example, a German and a Brazilian expatriate on the same assignment may receive very different
compensation packages, simply due to home-country salary levels, despite doing the same job.
GPHR Study Guide Extract – Global Compensation and Benefits / Expatriate Compensation
Approaches:
“The home-country balance sheet approach often results in perceived inequities across multinational
teams, especially when compensation varies widely based on country of origin.”
A headquarters-based approach is more consistent across assignees, helping manage fairness and
parity.
