Module 3 - Total Rewards Flashcards
Which pay strategy is the most common approach?
Lag competition
Match competition
Lead competition
Exceed competition
Match competition
Match competition is the most common pay strategy approach, where an organization pays about the same wage rates as and offers a benefits package similar to that of the competition.
Which type of base pay increase divides pay ranges into several pay rates, with increases related to length of service?
Cost-of-living
Step
Across-the-board
Promotion
Step
Step increases are used to move employees higher in an assigned pay range. They are related to length of service and are most often used for nonexempt employees.
Which pay strategy may enable an organization to offset other higher costs such as purchasing, distribution, or sales expenses?
Lag competition
Match competition
Lead competition
Exceed competition
Lag competition
Lagging the competition, where an organization offers employees a rate of pay below the market average, may enable the organization to offset other higher costs such as purchasing, distribution, or sales expenses.
An advantage of using questionnaires to collect job analysis data is their
identification of nonessential functions.
accuracy in determining salary expectations.
relative low cost and efficiency.
lack of respondent biases.
relative low cost and efficiency.
Questionnaires are relatively inexpensive and efficient. They are especially useful when there are a large number of jobs to be analyzed and limited resources.
What type of pay increase is designed to protect the employee’s purchasing power against rising inflation?
Cost-of-living adjustment
Across-the-board increase
Inflation increase
Step increase
Cost-of-living adjustment
A cost-of-living adjustment is designed to protect the employee’s purchasing power against rising inflation. These increases are distributed to all employees, either in equal cents per hour or as a percentage of current pay.
Which type of differential might an employee receive for transferring to a different city?
Travel
Premium
Time-based
Geographic
Geographic
Geographic differentials are used to attract workers to certain locations. Employees often receive additional compensation to work in remote locations or where climate or quality of living is a deterrent.
Flexible benefit plans include all of the following EXCEPT
flexible spending accounts.
preferred provider organizations.
premium-only plans.
full cafeteria plans.
preferred provider organizations.
Flexible benefit plans include premium-only plans, flexible spending accounts, and full cafeteria plans.
Total rewards are generally composed of
base pay, incentives, and differentials.
incentives, vacation pay, and retirement pensions.
pay and benefits.
performance-oriented bonuses and benefits.
pay and benefits.
A total rewards system generally consists of pay and benefits.
Which of the following is NOT a primary goal of a total rewards system?
Facilitate a learning organization.
Spend compensation dollars wisely.
Motivate and reward desired performance.
Attract people who can help the organization meet its mission and vision.
Facilitate a learning organization.
The goal of a total rewards system is not to create a learning organization. A total rewards system rewards performance, helps the organization meet its mission and vision, and uses compensation dollars wisely.
What task associated with the job specification analysis process helps protect against unintentional bias?
Document conclusions.
Determine essential functions.
Obtain job information.
Analyze data.
Document conclusions.
Relevant job facts and conclusions should be documented so they are not biased toward people with disabilities. Documentation must always be consistent with the results of the analysis done, and its level of detail can never exceed the level of detail provided by the analysis.
Premium pay is BEST described as employees earning
supplemental pay for working in a high-risk environment.
extra pay when they work in response to an emergency.
overtime pay at a rate of one-half times their regular pay.
extra pay for working holidays or vacation days.
extra pay for working holidays or vacation days.
Employees who work on holidays or during their vacation days receive premium pay.
Granting employees profit sharing is considered what type of incentive?
Entitlement
Individual
Gainsharing
Organization-wide
Organization-wide
Profit sharing is an organization-wide program that is tied to company goals. Profit sharing and stock ownership are the most common organizational incentive programs.
Which type of incentive allows employees who produce more to earn more?
Cost-of-living adjustment
Piece-rate system
Group
Entitlement
Piece-rate system
Piece-rate wages are determined by multiplying the number of units produced by the piece rate for one unit. Sometimes, employees earn a higher piece rate for units produced beyond a standard quantity.
Workers are paid extra for working holidays or vacation days. Which type of time-based differential pay does this describe?
On-call pay
Reporting pay
Nonstatutory overtime pay
Premium pay
Premium pay
With premium pay, employees are paid extra for working holidays or vacation days.
An example of a benefit that is voluntarily provided by an employer is
time off for voting.
disability insurance.
workers’ compensation.
unemployment compensation.
disability insurance.
Disability insurance is provided voluntarily by an employer. Time off for voting, unemployment compensation, and workers’ compensation are all statutory benefits.
