What are three challenges employers face when using foreign service premiums?

What will be an ideal response?

Answer: Employers that use foreign service premiums should consider the possible drawbacks. First, employees may misconstrue this premium as a regular permanent increase to base pay, and resentment toward the employer may develop following the last installment. Second, foreign service premiums may not have incentive value when employers make several small installments rather than fewer large installments. Third, employees may feel as if their standard of living has declined when they return to the United States because they no longer receive this extra money.