Module 1: General Overview & Fundamentals of Compensation

Question 1

the heart of the employer-employee relationship

Answer 1

Compensation programs

Question 2

to be successful in globally competitive markets, private sector organizations require the development of ____

Answer 2

Competitive advantage

Question 3

aimed at beating competitors in the market place and should be derived and anchored to the organization’s mission and vision

Answer 3

Business strategy

Question 4

These are articulated in statements that reveal the nature, goals and values of the organization

Answer 4

Mission and Vision

Question 5

_____ and _____ must be strategic in attracting, retaining and motivating employees

Answer 5

Human Resource and compensation policies

Question 6

Compensation strategy should :

Answer 6

1. support the mission
2. Alignment to business objectives
3. Drive engagement and performance

Question 7

2 approaches in developing a total rewards strategy

Answer 7

1. industry best practice
2. company best fit

Question 8

Less costly than customized plan as there is a less time spent in the up-front analysis, design, planning and implementation

Answer 8

Industry best practice

Question 9

Required to conduct a detailed need analysis of internal and external environment

Answer 9

Company best fit

Question 10

Customized solutions aligned to culture and corporate strategy

Answer 10

Company best fit

Question 11

Turn- key solution that allows for quick implementation

Answer 11

Industry best practice

Question 12

most costly are there is substantial investment in the up-front planning and time of internal and external resources

Answer 12

Company best fit

Question 13

Off-the-shelf

Answer 13

Industry best practice

Question 14

Everything that compromises the total work experience

Answer 14

Total Rewards

Question 15

Bespoke

Answer 15

Company best fit

Question 16

Benchmark against external data to ensure compensation levels and benefits match key competitors

Answer 16

Industry best practice

Question 17

the broadest term that is used to describe what
an employer is willing to offer individuals in exchange for their continued
employment.

Answer 17

Total Rewards Package

Question 18

rewards that are derived from the working environment such as opportunity for quality of work life, job satisfaction, job challenge, personal and professional development opportunities, sense of belonging, freedom to act, visionary leadership

Answer 18

Intrinsic rewards

Question 19

rewards that people traditionally think of as compensation because they confer a reward that is financially measurable

Answer 19

Extrinsic rewards

Question 20

Cash compensation

Answer 20

direct rewards

Question 21

employee benefits and services that protect an employee’s income or contribute to enhance an employee’s standard of living

Answer 21

indirect rewards

Question 22

refers to everything the comprises the total work experience with a particular employee

Answer 22

Total Rewards Package

Question 23

Direct Rewards or Indirect Rewards: Pay for time worked & Performance Compensation

Answer 23

Direct Rewards

Question 24

Direct Rewards or Indirect Rewards: Deferred cash value

Answer 24

Indirect Rewards

Question 25

Direct Rewards or Indirect Rewards: immediate cash value

Answer 25

Direct Rewards

Question 26

Least easily valued or costed; differing employee needs

Answer 26

Indirect Rewards

Question 27

Not linked to performance

Answer 27

Indirect Rewards

Question 28

Easily valued & measured; easier to ensure equity

Answer 28

Direct Rewards

Question 29

Direct Rewards or Indirect Rewards: Cash compensation that creates an employee’s income and standard of living

Answer 29

Direct Rewards

Question 30

Benefits & services that protect or enhance employee income

Answer 30

Indirect Rewards

Question 31

Refers to the value of a job for pay rate rankings based on various degrees of: Skills, effort, responsibility and working conditions

Answer 31

Internatl equity

Question 32

Decisions need to be made after reviewing compensation levels paid in other companies.

Answer 32

External equity

Question 33

The sum of all the direct and indirect compensation elements, however mixed and balanced, used by a company to compensate its employees

Answer 33

Total Compensation

Question 34

term that is frequently used to describe this process of comparing one organization's policies and practices to another

Answer 34

Benchmarking

Question 35

emphasize base pay and health care benefits with little of the total compensation package allocated to shares, options and bonuses.

Answer 35

Security-driven pay mix

Question 36

aims at encouraging employees to pursue team and personal performance improvements by putting more of their compensation "at risk"

Answer 36

Performance-driven pay mix

Question 37

attractive to professional and managerial employees who believe more in the "work-to-live" philosophy as opposed to those who focus their lives around a "live-to-work" routine

Answer 37

Work-life balance pay mix

Question 38

elements of an employer's compensation package that are designed to protect, replace, supplement and enhance earnings component of employment remuneration by addressing employee concerns and worries about certain future events of contingencies

Answer 38

Employee benefits

Question 39

Benefit programs perform this function by:

Answer 39

1. Protecting the standard of living of employees and their dependents against loss of earnings, or savings, as the result of medical or financial expenditures. 2. Replacing employment income (sickness and disability benefits) 3. Supplementing employee earnings (profit sharing or capital accumulation options) 4. Improving employee status (enhanced work environment, special services and preferential tax treatment)

Question 40

the special feature which distinguishes what we commonly refer to as employee benefit plans from "paid time off" items in the compensation package

Answer 40

Preferential tax treatment

Question 41

the purpose of this plan is to protect employees' income and alleviate concern over the loss of savings required to pay for large financial liabilities

Answer 41

income protection plans

Question 42

cover the loss of income from sickness, disability, employment, maternity/paternity leaves, retirement and death

Answer 42

Income Replacement plans

Question 43

Special benefits or perquisites ("PERKS"), to certain employees in addition to regular salary, benefits or bonus plans

Answer 43

Income Enhancement plans

Question 44

developed to enhance the employee's status and style of living through special employment conditions

Answer 44

Income enhancement plans

Question 45

distinguishing feature that differentiates employee benefits from wages or “paid time off”

Answer 45

Preferential tax treatment

Question 46

What type of employee benefit plan? Employer Critical Illness Plans

Answer 46

income protection plans

Question 47

What type of employee benefit plan? Canada / Quebec Pension Plans provide retirement and disability benefits

Answer 47

Income Replacement plans

Question 48

What type of employee benefit plan? company cars, free parking

Answer 48

Income enhancement plans

Question 49

What type of employee benefit plan? Club memberships

Answer 49

Income enhancement plans

Question 50

What type of employee benefit plan? tax & financial counselling

Answer 50

Income enhancement plans

Question 51

What type of employee benefit plan? Employer Extended Health Care and Dental Plans help cover expenses not covered by provincial plans

Answer 51

income protection plans

Question 52

What type of employee benefit plan? Worker Compensation provides disability benefits in case of injury

Answer 52

Income Replacement plans

Question 53

What type of employee benefit plan? Employer Pension Plans provide retirees with income

Answer 53

Income Replacement plans

Question 54

What type of employee benefit plan? Employment Insurance income support in case of unemployment, illness or maternity leave

Answer 54

Income Replacement plans

Question 55

What type of employee benefit plan? Provincial Health Care helps with fund doctor and hospital expenses

Answer 55

income protection plans

Question 56

What type of employee benefit plan? Cover a high proportion of expenses associated with accidents, sicknesses etc.

Answer 56

income protection plans

Question 57

What type of employee benefit plan? Wellness programs

Answer 57

Income enhancement plans

Question 58

Private sector employee savings vehicles which employee and/or employer contribution are invested to primarily provide savings

Answer 58

Capital Accumulation Plans

Question 59

CAPSs are established by employers for many reasons but are generally intended to:

Answer 59

1. provide employees with additional retirement income security 2. increase employee interest in immediate and deferred savings 3. act as a reward for corporate or individual performance 4. take advantage of tax savings opportunities