Compensation Strategy

What is the primary goal of a compensation strategy in a business?

• To reduce employee turnover

• To increase company profits

• To align employee performance with company goals

• To comply with legal regulations

Which of the following is NOT a component of a compensation strategy?

• Base pay

• Employee benefits

• Workplace safety

• Incentive pay

How does a well-designed compensation strategy benefit employees?

• By providing job security

• By offering competitive salaries and benefits

• By reducing work hours

• By increasing job responsibilities

What role does market research play in developing a compensation strategy?

• It helps in setting competitive salary levels

• It determines employee job satisfaction

• It identifies potential job candidates

• It evaluates employee performance

Which of the following is a common challenge in implementing a compensation strategy?

• Ensuring fairness and equity

• Increasing employee workload

• Reducing company expenses

• Decreasing employee benefits

What is the relationship between compensation strategy and employee motivation?

• A good compensation strategy can enhance employee motivation

• Compensation strategy has no impact on motivation

• Employee motivation decreases with higher compensation

• Compensation strategy only affects senior employees

Why is it important for a compensation strategy to align with organizational goals?

• To ensure legal compliance

• To attract more customers

• To drive employee performance towards achieving those goals

• To reduce the need for training programs

Which of the following is an example of indirect compensation?

• Salary

• Health insurance

• Overtime pay

• Commission

What is the impact of a poorly designed compensation strategy on a company?

• Increased employee satisfaction

• Higher employee turnover

• Improved company reputation

• Enhanced employee loyalty

How can a compensation strategy support talent retention?

• By offering flexible work hours

• By providing competitive pay and benefits

• By increasing job responsibilities

• By reducing training opportunities