Midterm

Question 1

Total Rewards is a _ that focuses on aspects of the workplace that are rewarding for employees, fueling _ and _ _.

Answer 1

Total Rewards is a strategy that focuses on aspects of the workplace that are rewarding for employees, fueling motivation and performance achievement.

Question 2

A Total Rewards strategy is predicated upon multiple factors, taking into account what employees value to find the right _ of rewards.

Answer 2

mix

Question 3

What is the current name of the former American Compensation Association that is today the largest membership organization in the world for compensation, benefits and total rewards professionals?

Answer 3

World at Work

Question 4

Total Rewards elevates ability to _? (ARME)

Answer 4

Attract Retain Motivate Engage

Question 5

What are the 5 elements of total rewards?

Answer 5

compensation, well-being, benefits, development, recognition

Question 6

what is employee engagement?

Answer 6

the psychological and emotional link between employees and a company relating to involvement in and enthusiasm for work

Question 7

Rewards are _ and _.

Answer 7

tangible and intangible

Question 8

What is an example of a tangible reward?

Answer 8

money

Question 9

What is an example of an intangible reward?

Answer 9

praise, recognition

Question 10

the _ is the perceived value of the balance of intrinsic and extrinsic rewards and benefits offered by the organization

Answer 10

employee value proposition

Question 11

What are the advantages of Total Rewards?

Answer 11

1. increased flexibility
2. improved recruitment & retention
3. reduced labor costs/ cost of turnover
4. heightened visibility in a tight labor market
5. enhanced profitability

Question 12

What are some of the reasons Total Rewards fail?

Answer 12

1. reengineering programs in pieces
2. trying to implement changes all at once
3. limited number of people involved in TR strategy
4. partial or no impact analysis
5. not communicating effectively

Question 13

TR was developed partially based upon the premise of Maslow’s hierarchy of needs. At what level is compensation and what level benefits most aligned on the hierarchy of needs pyramid?

Answer 13

benefits at #2
compensation at #1

Question 14

are your compensation programs SET?

Answer 14

strategic, equitable, transparent

Question 15

what are the four compensation specialties?

Answer 15

general, global, sales, executive

Question 16

Name 3/10 categories that describe the components of Compensation Program Development.

Answer 16

compensation philosophy
job analysis
job descriptions
market analysis
pay structures
incentive/bonus
pay practices
compliance
compensation systems
communications

Question 17

T/F Compensation is payment provided by an employer to an employee for services rendered

Answer 17

True

Question 18

What are the two types of pay?

Answer 18

base pay and variable pay

Question 19

What are the categories of base pay?

Answer 19

salary, hourly rates
pay increases

Question 20

What are the categories of variable pay?

Answer 20

profit-sharing plans
individual incentives
equity-based compensation

Question 21

The _ _ explains how & why compensation is viewed and practiced within the organization providing a foundation upon which compensation programs are built. Having a _ gives direction to managers and creates a level of transparency with employees.

Answer 21

compensation philosophy
philosophy

Question 22

What are the 4 essential elements of compensation philosophy?

Answer 22

link to business strategy
pay position against market
amount of fixed vs variable pay
internal vs. external equity balance

Question 23

What is an additional item that should be incorporated into compensation practices and mentioned in a company’s philosophy?

Answer 23

TRANSPARENCY

Question 24

what is at market market positioning?

Answer 24

compensation programs are valued within close proximity to market

Question 25

what is lag market positioning?

Answer 25

purposely pays employees lower than market average

Question 26

what is lead at market?

Answer 26

paying for higher qualified, more productive workers by positioning pay above market

Question 27

On the compensation continuum, what are some examples of entitlement benefits?

Answer 27

-seniority basis -cost of living increases -holiday bonuses

Question 28

On the compensation continuum, what are some examples of performance benefits?

Answer 28

-merit based increases -length of service not a factor for pay raises -bonuses tied to individual/organizational performance

Question 29

Companies need to ask themselves when creating a philosophy whether: compensation should be defined and determined mainly by _ or _ value and alignment.

Answer 29

internal or external

Question 30

The process of gathering, examining and interpreting data about the jobs tasks and responsibilities is _

Answer 30

job analysis

Question 31

What are three reasons for job analysis?

Answer 31

training & development recruitment & selection performance criteria job evaluation job design

Question 32

What is found in a job anaylsis?

Answer 32

name, purpose, responsibilities, requirements

Question 33

What are 2 customary job analysis methods?

Answer 33

observation, individual interview, group interview, work logs, questionnaires

Question 34

What document summarizes the most important and prevalent aspects of a job?

Answer 34

Job descriptions

Question 35

Is a company required to have a job description?

Answer 35

no

Question 36

Focus of a job description should be on the _ and not on any _

Answer 36

job itself, specific person

Question 37

Sentence (or a variation thereof) that should be noted as the last duty in the responsibilities section of the job description

Answer 37

performs other duties as assigned

Question 38

Name 3 ways that job descriptions are used?

Answer 38

recruiting communications job evaluation market pricing developing career paths training & development

Question 39

What are the 4 parts of salary market analysis?

Answer 39

Part 1: Salary Survey Selection Part 2: Job Benchmarking Part 3: Market Pricing Part 4: Employee Salary & Job Midpoint Market Comparison

Question 40

What is a job benchmark?

Answer 40

jobs that are common in a job family, specific industries or across all industries used as comparative matches for compensation market analysis

Question 41

_ is a method used by compensation analysts to adjust or move market salary data that reflects a previous effective date to a current or future date using the average salary market movement. _ also brings data from different sources to common date.

Answer 41

data aging

Question 42

Salary Market Guideline: Salaries within _ are at market.

Answer 42

5%

Question 43

Salary Market Guideline: Salaries within _ are within acceptable market parameters

Answer 43

20%

Question 44

Salary Market Guideline: Salaries exceeding _ are outside of acceptable market parameters.

Answer 44

20%

Question 45

What is the salary market analysis calculation?

Answer 45

(salary - market average)/salary

Question 46

_ establish the internal acceptable pay parameters for individual jobs most typically aligned with market in accordance with the organization's compensation philosophy.

Answer 46

salary ranges

Question 47

What is a hierarchical grade structure in salary ranges?

Answer 47

ranges are developed within a grade hierarchy for a group of jobs per grade showing similar value externally in the market and internally int he company. midpoint are blended using market rates of benchmarked jobs.

Question 47

Salary ranges can be _ or _.

Answer 47

market-priced or hierarchical grade structure

Question 48

What is market-priced in salary ranges?

Answer 48

salary range is created for one job using the average market salary as the midpoint

Question 49

What are the three control points of a salary range?

Answer 49

minimum, midpoint, maximum

Question 50

what is a compa-ratio?

Answer 50

numerical designation of an employee's position within a salary range in comparison to the midpoint.

Question 51

what is the calculation of compa-ratio?

Answer 51

employee salary / salary range midpoint

Question 52

In a compa-ratio, what should a salary fall between (minimum and maximum)?

Answer 52

.80 - 1.20