Lesson 6- Compensation & Benefits Flashcards
What does an effective compensation program do?
An effective compensation program will ensure that the wages provided to its employees are competitive with comparable organizations in the area
What is a primary function of a union?
A primary function of a union is to bargain with the organization over conditions of employment, especially wages
What is the largest expense in an organization usually?
Payroll
What is Job evaluation?
Job evaluation is the process of assessing job content and ranking jobs according to a consistent set of job characteristics and worker traits (Skill, responsibility, and experience)
What are the methods of Job evaluation?
- Job Ranking System
- Job Classification System
- Point System
- Factor Comparison System
What is Job Ranking?
When jobs are ranked subjectively according to their overall worth to the organization
What is Job Classification?
Also known as Job grading, is slightly more sophisticated than job ranking
What is Point System?
A form of job evolution that assesses the relative importance of the Job’s key factors in order to arrive at its realitve worth
What is Factor Comparison Method?
is a form of job evaluation that assigns a part of each job’s wage to the key factors of the job
What is a range spread?
The range in pay for the positions in the group. is has a minimum and a structured approach on how employees compensation increases through the range
Name three objectives that an organization seeks to achieve through effectively administering their compensation policies:
- Retain Present Employees
- Ensure Equity
- Control Costs
Explain the difference between direct and indirect compensation?
Direct compensation consists of all forms of pay, such as wages, salaries, incentives, bonuses and commissions. Indirect compensation can include benefit plans that provide some degree of financial protection against accident, illness, old age , death and also include paid vacation time and work-life balance rewards.
What does compensation include?
The entire package of rewards that employees may receive from their employment. Known as total rewards, benefits may also be flexible scheduled, recognition programs, as well developments and education subsidies in support of career growth
What are three government constraints that must be considered when developing compensation policies?
- Canada Labor Code
- Minimum Wage Legislation
- Pay Equity Legislation
Explain Contributory Plans
Both the employer and employee pay part of the costs
Why was Employment Insurance established?
To financially assist those transitioning from one job to another
Why do organizations offer competitive voluntary benefits to their employees
Organizations hope to retain its best employees and attract qualified candidates
What is defined plan?
An employee receives a specific amount that is based on years of service and average earnings regardless of the amount of contributions
What is Defined contributions?
Provides a pension amount that is based on the amount of accumulated funds and the investment income that those funds can provide .
All of the following are external factors that can influence the rates an organization decides to pay its
staff, except:
A) Compensation Policy
B) Cost of living
C) Legal requirements
D)Collective bargaining
A)Compensation policy
The Following is a form of job evaluation whereby jobs are subjectively rated relative to other jobs according to their overall worth to the organization
A) Job classification
B) Factor comparison system
C) Job ranking system
D) Point System
C) Job ranking system
