Learn about the most effective market practice benefits for enticing executives to join global organizations. Stock options, performance grants and incentives are key. SHRM-SCP exam question explained.
Table of Contents
Question
Which market practice benefits should be offered to attract or entice executives to join a global organization?
Answer
Stock options, performance grants, and incentives
Explanation
When looking to attract high-level executives to join a global organization, it’s important to offer compelling benefits that match or exceed market practices. Three of the most effective benefits are:
- Stock options – Offering equity in the company through stock options gives executives a personal stake in the company’s success and helps align their interests with shareholders. It’s a valuable long-term incentive.
- Performance grants – Providing grants or bonuses tied to hitting key performance metrics incentivizes executives to drive results and helps the company meet its strategic goals. Grants should be structured to reward the specific outcomes the organization needs from its leaders.
- Incentives – In addition to performance-based pay, perks and incentives like executive health plans, supplemental retirement contributions, deferred compensation, relocation assistance, housing allowances, etc. sweeten the overall package. Incentives help offset an executive’s opportunity cost of leaving another role.
In summary, a combination of stock options for long-term wealth creation potential, performance grants to drive results, and attractive incentives that enhance the overall offering tend to be most effective for attracting top global executive talent in today’s competitive market. It’s critical for global organizations to benchmark their executive packages against industry standards to ensure they can win the war for leadership talent.
SHRM Senior Certified Professional (SHRM-SCP) certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the SHRM-SCP exam and earn SHRM-SCP certification.