✔️[People] Total Rewards

Question 1

Occurs when there is only a small difference in pay between employees regardless of their experience, skills, level, or seniority

Answer 1

Pay compression

Question 2

One-time payment made to an employee; also called a lump-sum increase (LSI).

Answer 2

Performance bonus

Question 3

Plan or method implemented by an organization that provides monetary, benefits-in-kind, and developmental rewards to employees who achieve specific business goals.

Answer 3

Total rewards strategy

Question 4

Pay based on the quantity of work and outputs that can be accurately measured.

Answer 4

Productivity-based pay

Question 5

Situations in which employees’ pay is above the range maximum.

Answer 5

Red-circle rates

Question 6

Situation where an individual’s performance on the job is the basis for the amount and timing of pay increases; also called merit pay or pay for performance.

Answer 6

Performance-based pay

Question 7

Job evaluation method that involves establishing a hierarchy of jobs from lowest to highest based on each job’s overall value to the organization.

Answer 7

Job ranking

Question 8

Provides each incumbent of a job with the same rate of pay, regardless of performance or seniority; also known as single-rate pay.

Answer 8

Flat-rate pay

Question 9

System in which pay is based on longevity in the job and pay increases occur on a pre-determined schedule.

Answer 9

Time-based step-rate pay

Question 10

Direct and indirect remuneration approaches that employers use to attract, recognize, and retain workers.

Answer 10

Total rewards

Question 11

Job evaluation method in which descriptions are written for each class of jobs; individual jobs are then put into the grade that best matches their class description.

Answer 11

Job classification

Question 12

Job evaluation method in which the relative worth and pay structure of different jobs are based on an assessment of their content and their relationship to other jobs within the organization.

Answer 12

Job-content-based job evaluation

Question 13

Process of determining a job’s value and price for the purpose of attracting and retaining employees by comparing the job against other jobs within the organization or against similar jobs in competing organizations.

Answer 13

Job evaluation

Question 14

Combining several salary grades or job classifications with narrow pay ranges into one band with a wider salary spread.

Answer 14

Broadbanding

Question 15

Pay rate divided by the midpoint of the pay range.

Answer 15

Compa-ratio

Question 16

Provides each incumbent of a job with the same rate of pay, regardless of performance or seniority; also known as flat-rate pay.

Answer 16

Single-rate pay

Question 17

Used to group jobs that have approximately the same relative internal or external worth and are paid at the same rate or within the same pay range.

Answer 17

Pay grades

Question 18

Extent to which employees perceive that monetary and other rewards are distributed equitably, based on effort, skill and/or relevant outcomes.

Answer 18

Internal equity

Question 19

Pay adjustment given to eligible employees regardless of performance or organizational profitability; usually linked to inflation.

Answer 19

Cost-of-living adjustment (COLA)

Question 20

Pay systems in which employee characteristics, rather than the job, determine pay.

Answer 20

Person-based pay

Question 21

Short but broad statement documenting an organization’s guiding principles and core values about employee compensation.

Answer 21

Compensation philosophy

Question 22

Job evaluation method in which each job is compared with every other job being evaluated; the job with the largest number of “greater than” rankings is the highest-ranked job, etc.

Answer 22

Paired-comparison method

Question 23

Form of direct compensation where employers pay for performance beyond normal expectations to motivate higher performance.

Answer 23

Incentive pay

Question 24

Job evaluation method that looks at compensable factors (such as skills and working conditions) that reflect how much a job adds value to the organization; points are assigned to each factor and then added to come up with an overall point value for the job.

Answer 24

Point-factor system

Question 25

Payments in return for the achievement of specific, time-limited, targeted objectives.

Answer 25

Premiums

Question 26

Job evaluation method in which the relative worth and pay structure of different jobs are based on their market value or the going rate in the marketplace.

Answer 26

Market-based job evaluation

Question 27

One-time payment made to an employee; also called performance bonus.

Answer 27

Lump-sum increase (LSI)

Question 28

Instruments that collect information on prevailing market compensation and benefits practices (including starting wage rates, base pay, pay ranges, statutory and market cash payments, variable compensation, and paid time off).

Answer 28

Remuneration surveys

Question 29

Situation where an individual’s performance on the job is the basis for the amount and timing of pay increases; also called performance-based pay or pay for performance.

Answer 29

Merit pay

Question 30

Set the upper and lower bounds of possible compensation for individuals whose jobs fall within a pay grade.

Answer 30

Pay ranges

Question 31

Situations in which an employee’s pay is below the minimum of the range.

Answer 31

Green-circle rates

Question 32

Situation where an individual’s performance on the job is the basis for the amount and timing of pay increases; also called merit pay or performance-based pay.

Answer 32

Pay for performance (P4P, PfP)

Question 33

X
- When movement in market is used to adjust outdated data

X
- Data can be weighed for a better match

X
- combined 2 or more salary grades into creating larger ranges and give people wide latitude to move within their job without outgrowing the pay scale”

Answer 33

Aged

Leveled

Broadbanding

Question 34

termination circumstances bb

Answer 34

“🔐 The circumstances under which an organization can terminate employment and the amount of payment the terminated employee receives is prescribed by law and differs by country. Laws in various countries may include additional aspects, for example:

Issuing warnings for misbehavior.

The reasons for which termination can occur.

The amount of severance payments provided to an employee.

How long wages must continue to be paid to an employee after termination.

Terminating employees without a thorough understanding of these requirements puts an employer at risk.”

Question 35

disability benefits bb

Answer 35

🔐 The concept of disability benefits takes on different meanings in different countries. In general, it refers to payments made to employees who are physically unable to perform their jobs because of illness or injury. Sometimes it covers only incapacitation due to job-related injuries or illnesses; other times it also covers causes outside the workplace.

Question 36

healthcare bb

Answer 36

🔐 Most countries have a statutory universal access/universal coverage health-care system in which health care is paid for through some sort of social insurance, funded by employers, employees, general taxation, or combinations of these. In some countries, employers offer employer-sponsored health insurance. It is rare, however, for employees not to be at least partially covered by some form of government-supported health care.