Midterm Flashcards
Total Rewards is a _ that focuses on aspects of the workplace that are rewarding for employees, fueling _ and _ _.
Total Rewards is a strategy that focuses on aspects of the workplace that are rewarding for employees, fueling motivation and performance achievement.
A Total Rewards strategy is predicated upon multiple factors, taking into account what employees value to find the right _ of rewards.
mix
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?
World at Work
Total Rewards elevates ability to _? (ARME)
Attract Retain Motivate Engage
What are the 5 elements of total rewards?
compensation, well-being, benefits, development, recognition
what is employee engagement?
the psychological and emotional link between employees and a company relating to involvement in and enthusiasm for work
Rewards are _ and _.
tangible and intangible
What is an example of a tangible reward?
money
What is an example of an intangible reward?
praise, recognition
the _ is the perceived value of the balance of intrinsic and extrinsic rewards and benefits offered by the organization
employee value proposition
What are the advantages of Total Rewards?
- increased flexibility
- improved recruitment & retention
- reduced labor costs/ cost of turnover
- heightened visibility in a tight labor market
- enhanced profitability
What are some of the reasons Total Rewards fail?
- reengineering programs in pieces
- trying to implement changes all at once
- limited number of people involved in TR strategy
- partial or no impact analysis
- not communicating effectively
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?
benefits at #2
compensation at #1
are your compensation programs SET?
strategic, equitable, transparent
what are the four compensation specialties?
general, global, sales, executive
Name 3/10 categories that describe the components of Compensation Program Development.
compensation philosophy
job analysis
job descriptions
market analysis
pay structures
incentive/bonus
pay practices
compliance
compensation systems
communications
T/F Compensation is payment provided by an employer to an employee for services rendered
True
What are the two types of pay?
base pay and variable pay
What are the categories of base pay?
salary, hourly rates
pay increases
What are the categories of variable pay?
profit-sharing plans
individual incentives
equity-based compensation
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.
compensation philosophy
philosophy
What are the 4 essential elements of compensation philosophy?
link to business strategy
pay position against market
amount of fixed vs variable pay
internal vs. external equity balance
What is an additional item that should be incorporated into compensation practices and mentioned in a company’s philosophy?
TRANSPARENCY
what is at market market positioning?
compensation programs are valued within close proximity to market
what is lag market positioning?
purposely pays employees lower than market average
what is lead at market?
paying for higher qualified, more productive workers by positioning pay above market
On the compensation continuum, what are some examples of entitlement benefits?
-seniority basis
-cost of living increases
-holiday bonuses
On the compensation continuum, what are some examples of performance benefits?
-merit based increases
-length of service not a factor for pay raises
-bonuses tied to individual/organizational performance
Companies need to ask themselves when creating a philosophy whether: compensation should be defined and determined mainly by _ or _ value and alignment.
internal or external
The process of gathering, examining and interpreting data about the jobs tasks and responsibilities is _
job analysis
What are three reasons for job analysis?
training & development
recruitment & selection
performance criteria
job evaluation
job design
What is found in a job anaylsis?
name, purpose, responsibilities, requirements
What are 2 customary job analysis methods?
observation, individual interview, group interview, work logs, questionnaires
What document summarizes the most important and prevalent aspects of a job?
Job descriptions
Is a company required to have a job description?
no
Focus of a job description should be on the _ and not on any _
job itself, specific person
Sentence (or a variation thereof) that should be noted as the last duty in the responsibilities section of the job description
performs other duties as assigned
Name 3 ways that job descriptions are used?
recruiting
communications
job evaluation
market pricing
developing career paths
training & development
What are the 4 parts of salary market analysis?
Part 1: Salary Survey Selection
Part 2: Job Benchmarking
Part 3: Market Pricing
Part 4: Employee Salary & Job Midpoint Market Comparison
What is a job benchmark?
jobs that are common in a job family, specific industries or across all industries used as comparative matches for compensation market analysis
_ 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.
data aging
Salary Market Guideline:
Salaries within _ are at market.
5%
Salary Market Guideline: Salaries within _ are within acceptable market parameters
20%
Salary Market Guideline: Salaries exceeding _ are outside of acceptable market parameters.
20%
What is the salary market analysis calculation?
(salary - market average)/salary
_ establish the internal acceptable pay parameters for individual jobs most typically aligned with market in accordance with the organization’s compensation philosophy.
salary ranges
What is a hierarchical grade structure in salary ranges?
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.
Salary ranges can be _ or _.
market-priced or hierarchical grade structure
What is market-priced in salary ranges?
salary range is created for one job using the average market salary as the midpoint
What are the three control points of a salary range?
minimum, midpoint, maximum
what is a compa-ratio?
numerical designation of an employee’s position within a salary range in comparison to the midpoint.
what is the calculation of compa-ratio?
employee salary / salary range midpoint
In a compa-ratio, what should a salary fall between (minimum and maximum)?
.80 - 1.20
