Total Rewards Module 4 - Creating the Direct Compensation Program

Question 1

What is broadbanding?

Answer 1

Collapses the traditional salary structure into fewer grades. This gives employees a much wider pay range without requiring employees to change job responsibilities.

Question 2

What is compa-ratio?

Answer 2

Manages base pay compensation.

Ex. for an individual = salary divided by range midpoint

Question 3

What are individual short term performance pay rewards?

Answer 3

Raise, lump sum bonus, commission, piece rate

Question 4

What are group short term performance pay incentives?

Answer 4

Goal-sharing (for meeting goals)- single, multi, financially funded
Profit sharing (portion of profits) - current, deferred, combination
Gain-sharing (reward for things like production increases) - scanlon, rucker, improshare, family of measures

Question 5

What are long term performance pay plans?

Answer 5

Employee stock bonus plan
Employee share purchase plan
Employee stock option plan
Phantom shares