M3S1 Compensation and Benefits

Question 1

The two main goals of compensation and benefits:

Answer 1

Attract
Retain

Question 2

convince candidates through competitive rates and benefits

Answer 2

Attract

Question 3

Common Pay Systems

Answer 3

PGMSCBV

pay grade system
going rate system
management fit system
skill-based pay
competency- based pay
broadbanding
variable pay system

Question 4

Salary scale is set up for each job in an organization

Answer 4

pay grade system

Question 5

Pay is based on the industry standard for a specific job title.

Answer 5

going rate system

Question 6

provides managers with the highest degree of flexibility to determine the compensation they believe an individual should receive.

Answer 6

management fit system

Question 7

Pay is based on skills, not job title.

Answer 7

skill-based pay

Question 8

Emphasizes employee traits and growth potential, not just skills.

Answer 8

Competency- based pay

Question 9

Categorizes similar jobs into broader pay bands.

Answer 9

broadbanding

Question 10

Pay is linked to achieving defined goals or targets.

Answer 10

variable pay system

Question 11

Pay-Related Motivational Theories

Answer 11

Equity theory
Reinforcement theory
Expectancy theory

Question 12

Motivation to accept and/or stay in a job are affected by pay

Answer 12

Pay-Related Motivational Theories

Question 13

People assess their compensation satisfaction by comparing it to others’ pay

Answer 13

Equity theory

Question 14

Common Laws Related to compensation and benefits

Answer 14

Minimum Wage Laws
13th-Month Pay Law
Service Incentive Leave (SIL
Expanded Maternity Leave
Paternity Leave
Solo Parents’ Welfare Act
Retirement Pay Law
Social Security System
Home Development Mutual Fund (Pag-IBIG Fund)
Philippine Health Insurance Corporation (PhilHealth)

Question 15

HR professionals need to keep up-to-date with the
minimum wage rates set by the National Wages and
Productivity Commission (NWPC) for different regions
and industries.

Answer 15

Minimum Wage Laws

Question 16

Individuals contribute effort based on their expected rewards.

Answer 16

Expectancy theory

Question 17

High performance followed by rewards promotes future high performance.

Answer 17

Reinforcement theory

Question 18

This law mandates the payment of a 13th-month pay
to all rank-and-file employees in the private sector,
which is equivalent to 1/12 of the basic salary of an
employee within a calendar year.

Answer 18

13th-Month Pay Law

Question 19

Grants five days of paid leave annually to
employees with one year of service. Covers all private sector employees, allowing them to
use the leave for any reason,

Answer 19

Service Incentive Leave (SIL

Question 20

female employees are now entitled to 105 days of maternity leave with full pay,
regardless of the mode of delivery

This law also includes an additional 15 days of leave
for solo mothers

Answer 20

Expanded Maternity Leave

Question 21

Under this law, male employees are entitled to 7 days
of paternity leave with full pay.

This benefit provides fathers the opportunity to be
with their families during a crucial time and

Answer 21

Paternity Leave

Question 22

Supports single parents by providing benefits like
flexible work schedules, parental leave, educational
assistance, housing preferences, and healthcare
services for them and their children.

Answer 22

Solo Parents’ Welfare Act

Question 23

Covers sickness, maternity, disability, retirement,
and death benefits

Answer 23

Social Security System

Question 24

This law mandates private sector employers to
provide retirement pay to employees who meet
certain conditions

Answer 24

Retirement Pay Law

Question 25

focuses on housing and savings, also romotes homeownership and financial stability

Answer 25

Pag-IBIG Fund

Question 26

Covers medical expenses, aiming to provide
accessible healthcare and reduce financial
burden.

Answer 26

Philippine Health Insurance Corporation (PhilHealth)