Worldatwork Exam CECP Topic 1 Question 35 Discussion

Actual exam question for Worldatwork's CECP exam

Question #: 35
Topic #: 1

[All CECP Questions]

What is the primary reason why a compensation professional working for a multinational company should understand regulatory requirements and application of rewards globally?

ABecause legal compliance with compensation-related regulations is the responsibility of the compensation department

BBecause the compensation professional has a fiduciary responsibility to ensure that the financial resources of their organization are spent in a prudent manner

CBecause it is possible to pay significantly less for talent in different countries and compensation should advise management on when and where to locate various jobs within the company

DThey shouldn't. Due to the complexities of global regulations and practices, compensation administration outside of the home country should be outsourced.

Show Suggested Answer

Suggested Answer: C

by Barbra at Jan 05, 2023, 06:38 AM

Limited Time Offer

25%

Off

Get Premium CECP Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Stefanie

4 days ago

Option D: 'They shouldn't.' Wow, that's the kind of bold, outside-the-box thinking I like to see. Next question: 'Should the compensation department just take a long lunch and let the interns handle it?'

upvoted 0 times

...

Willard

6 days ago

D is a cop-out. Compensation professionals should embrace the challenge of navigating global complexities, not just pass the buck to outsiders. Where's the fun in that?

upvoted 0 times

...

Carlee

9 days ago

I believe option C) is also important. Understanding global rewards can help the company save costs and make strategic decisions.

upvoted 0 times

...

Chaya

9 days ago

C is an interesting option, but it's a bit of a stretch. Surely we shouldn't be exploiting global pay disparities for the company's benefit, right? That's just bad karma.

upvoted 0 times

...

Alecia

10 days ago

I agree with A. Compensation professionals need to be aware of the legal landscape in all the countries where the company operates, so they can properly advise management.

upvoted 0 times

...

Adaline

17 days ago

A is the correct answer. As a compensation professional, understanding global regulatory requirements is crucial to ensure legal compliance and avoid costly penalties.

upvoted 0 times

...

Elliot

22 days ago

I agree with Tammara. It's crucial for the compensation professional to understand global regulations to avoid legal issues.

upvoted 0 times

...

Tammara

24 days ago

I think the primary reason is A) Because legal compliance with compensation-related regulations is the responsibility of the compensation department.

upvoted 0 times

...