Compensation Strategy

Arrange the compensation planning strategy creation steps:

A. Determine Pay Grades

B. Plan for Rewards

C. Allocate Budget

D. Confirm Compliance

E. Ask for Employee Input

F. Communicate About Total Compensation

G. Benchmark against Competitors

• BADEGFC

• EGCBADF

• CBDAEFG

• FCBADGE

______________ creates an informed strategic compensation approach that fits with the talent management strategy and will satisfy most employees.

• Planning

• Asking for employee input

• Involving the top management

• Agreeing to employee terms

Which of the following should be included when allocating Budgets?

• Costs

• Benefits

• Bonuses

• Performance plans

• Incentives

Factors determining the employee incentives:

• Experience and education level

• industry

• cost of living

• in-demand skill sets

• supply and demand of workforce and market.

Choose from below all the types of incentives for employees to boost their morale and performance:

• Bonus

• Saying thank you(applauding)

• One on one lunch with your employer

• Tips

• Flexibility at work

A particular company wants to make sure employees feel they are appreciated, while at the same time ensuring key employees have a sense of loyalty towards the company. Which of the following systems does this company most likely use?

• Benefits

• Performance Pay

• Indirect Pay

• Wage pay

• Base pay

As an employer, you believe it is always a good idea to pay people for their contributions to organizational results. Which of the following plans would likely be the key component of the compensation plan?

• Indirect pay

• Base Pay

• Pay for knowledge

• Performance Pay

A particular organization wants to include in their compensation system some element of organizational performance linkage, while at the same time it wants to encourage employee commitment. In addition to base pay, which of the following would most likely be included in this compensation mix?

• Merit Pay

• Piece rates

• Profit Sharing

• Targeted Incentives

As a human resource consultant, you have been asked to provide some rationale why an organization may decide to use base pay as a cornerstone for a compensation scheme. Which of the following notions would you advance in supporting your argument?

• It provides an organization with more labour flexibility in the allocation of tasks.

• It guarantees employee performance and aligns salaries to performance.

• It is the most popular; hence, the organization should use it.

• Unions are most likely to agree with management's approach, given this scheme

Which of the following is a reason why employees may prefer base pay over performance pay?

• Performance pay is more predictable.

• Base pay is directly related to their performance level.

• They dislike uncertainty about their compensation.

• Market conditions are always changing.