P | M04 CB Pre-exam

What is the compa-ratio for an employee who earns $15 per hour where the salary range has a midpoint of $12 per hour?

• 0.03

• 0.80

• 1.25

• 1.35

Beth, a small business owner, wants to ensure external equity when establishing pay rates. Beth should most likely ___________ .

• use wage curves to price each pay grade

• compare performance appraisals

• conduct a salary survey

• check online pay sites

What are the two main categories of financial rewards?

• Compensation and work/life balance

• Employee benefits and career development

• Direct (monetary) and indirect (benefits)

• Training and employee benefits

Which of the following is a long-term pay policy that can protect jobs and control labor costs by linking compensation to production?

• Internships

• Overtime pay

• Profit sharing

• Early retirement

Above-market compensation policies are more likely to:

• create an impression of innovation and success.

• improve employee morale and reduce employee turnover.

• affect employee cooperation more than any other business policy.

• reduce barriers between people who need to work closely together.

Keith works as a construction foreman, and he is viewed as a reliable, competent employee. Keith was recently injured in a car accident while on vacation, and his injuries are so severe that he will not be able to return to work. Which of the following would most likely provide Keith with benefits?

• group life insurance

• unemployment insurance

• workers' compensation insurance

• supplemental benefits

The indirect financial and nonfinancial payments employees receive for continuing their employment with a company are called _________.

An HR manager conducting an HR audit on compensation would most likely search for __________

• current job descriptions

• workforce health and safety training

• completed benefit enrollment forms

• compliance with labor laws

A compensation method related to an employee’s individual performance is known as ________

• an incentive pay plan.

• a differential pay plan.

• a step plan.

• a merit pay plan.

An employee is motivated by knowing there is room for base pay to grow. This BEST exemplifies _________

• an effective metric.

• pay transparency.

• a benefits summary.

• required communication.