Class 7 : COMPENSATING EMPLOYEES FAIRLY

Question 1

as a major HR tool, compensation aims :

3 things

Answer 1

• to attract
• to motivate
• to retain employees

Question 2

as a manager, what is his role to ensure employee equity :

• ____ job consistency
• ____ salary competitiveness
• employe ____ and mobilization

Answer 2

internal, external, motivation

Question 3

name 2 direct compensation and 1 indirect compensation

Answer 3

direct :
- base salary (labour standards act, Canadian charter of rights and freedoms and pay equity act to correct salary differences caused by systematic discrimination), salary increase, cost-of-living and market adjustment, incentives and profit sharing

indirect :
- benefits, paid time off (labour standards act), employee services

Question 4

what are the four types of equity to build a compensation program

Answer 4

• internal
• external
• individual
• collective

Question 5

name 2 exemple for internal equity and 1 for external equity

Answer 5

internal (it is equity with respect to salaries and requirements for similar or different jobs within the organization) :

• job analysis
• job description
• job evaluation.

external (is equity with respect to salaries for similar jobs in different organization) ;

• salary suveys
• salary ranges

Question 6

name 2 exemple for individual equity and 1 for external equity

Answer 6

individual equity (equity with respect to salaries for individual) :

• individual performance
• competency
• señorita
• experience

collective equity (is equity with respect tot he compensation received by different groups of employees int eh organization)
- the groups contribution to the success of the org

Question 7

in order to set a base salary, you need to do a step-by-step process :

attribute a relative ____ to a ob position based on its importance to the organization

1. qualifications and experience _____
2. responsabilités
3. intellectual and physical ____
4. working ____

Answer 7

value

1. required
2. effort
3. working conditions

Question 8

true or false : organization need to define various levels of education, per exemple, and a weighting system has to be determined for each job position

Answer 8

true

Question 9

give 1 exemple of short therm pay incentives and 1 for long term

Answer 9

ST :

• team bonu s
• gain sharing
• profit sharing

LT :

• stock purchase
• stock options

Question 10

name 2 exemple of indirectt compensation

Answer 10

1. benefits (retirement plan, insurance plan and government plan)
2. paid time off (statutory holidays, vacation, leave)
3. employee service (redevantes, day care, gym..)