CH 9

Question 1

Mean, Weighted average, Median

Answer 1

Mean - sum of value/ number of values
Weighted average - an average resulting from multiplying each component by a factor reflecting its importance.
Median - middle value

Question 2

Steps to conduct a compensation survey

Answer 2

1) Identify jobs to be surveyed
2) determine info needed( salary, benefits, hours, education, training)
3) Who to survey
4) Analyze data

Question 3

Sources of compensation data (GIC)

Answer 3

Government agencies
Industry groups
Compensation consulting firms

Question 4

Understanding Labour Markets - Key considerations

Answer 4

ER's ability to pay
company profits
labour $ to total costs
poor work conditions
poor industry reputation
competitors pay range
union/non union

Question 5

compa-ratio

Answer 5

A measure of distribution of employees within their pay range calculated by dividing the mean base pay by the midpoint of the pay range.

Question 6

interquartile range

Answer 6

A measure of pay dispersion across employers, calculated by dividing the difference between the 25th and 75th percentile values by the value of the 25th percentile

Question 7

quartiles or deciles

Answer 7

Division of an ordered list of values into either four groups (quartiles) or ten groups (deciles).

Question 8

key job matching

Answer 8

Including jobs on a compensation survey that are well understood and numerous in the labour market, and asking respondents to supply compensation information for those jobs

Question 9

market comparator

Answer 9

Firms selected as comparators when constructing a sample of market data.

Question 10

compensating differential

Answer 10

A higher compensation level offered by an employer because of undesirable aspects of the employment.