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WorksheetsCompensation and Benefits Final Exams
Total questions: 78
Worksheet time: 1hrs 13mins
What is the purpose of employee compensation?
To provide non-monetary incentives
To assess market competitiveness
To reward employees for their work
To determine job requirements
What are the main elements of employee compensation?
Fixed pay, variable pay, equity pay
Salary, wage, bonus
Health benefits, work-from-home, wellness program
Life and accident coverage, housing projects, transportation
What is the purpose of job evaluation?
To compare jobs with each other to create a fair pay structure
To determine employee performance
To assess market competitiveness
To develop employee development plans
What are the advantages of skill-based pay?
Aligns with organizational goals
Increases workforce adaptability
Fosters a culture of continuous improvement
Encourages professional growth
What is the main disadvantage of competency-based pay?
Foster a culture of disjointed team
Increases workforce adaptability
Aligns with organizational goals
Encourages professional growth
What is the main advantage of traditional graded pay structures?
Very supportive of internal equity
Provides utmost flexibility
Easy to administer and automate
Based on objective market data
What is the main advantage of broadbands pay structures?
Provides utmost flexibility
Very supportive of internal equity
Easy to administer and automate
Based on objective market data
What is the main advantage of step structures?
Easy to administer and automate
Based on objective market data
Provides utmost flexibility
Very supportive of internal equity
What is the main advantage of market-based pay structures?
Very supportive of internal equity
Provides flexibility and ability to maintain internal equity
Based on objective market data
Easy to administer and automate
What is the main advantage of using pay grades and salary ranges?
All of the above
Attract top talent with competitive pay offerings
Ensure equal compensation for all employees
Aid in unbiased and clear communication about job performance
Annual salary exempted from tax
Php200,000
Php250,000
Php300,000
Php350,000
What are the de minimis benefits?
Vacation leave of 12 days/year
Rice subsidy of Php2,000/month
Christmas gift of Php5,000/employee/year
Actual medical assistance of Php20,000/year
What is the Philhealth contribution rate implemented for Y2025?
4%
4.5%
5%
5.5%
What are the Philippines statutory benefits?
Meal time of 30 mins.
Service Incentive Leave of 5 days/year
13th month pay
Weekly rest period of 2 days
TIN means
(a)
The 3 mandatory government contributions required for all employees are: SSS, Pag-ibig and ...
(a)
What is the top reason why employee leave the company?
Higher pay
Better benefits
Career advancement
Flexible work from home option
What are the top fringe benefits for in-office or onsite work?
Free food
Salary increase
Employee discount
Permanent work from home set-up
Most important fringe benefits for remote work set-up
Home-office stipend
Free food
Internet assistance
Company retreat
It is the mney received by an employee from an employer as a salary or wages for services rendered
(a)
It is the clean rate of compensation the employee receives in exchange for the services he or she provides for the employer
(a)
It is the part of employee compensation determined by the performance of the employee or triggered by reaching a certain milestone
(a)
it is the benefit packages that usually come with a job position
(a)
It involves the money paid to employees in the form of hourly wages, a weekly, monthly, or annual salary, as well as commissions and bonuses
(a)
Types of Compensation
Commission
Fund
Basic salary
Overtime
It is the various types of non-wage compensation provided to employees in addition to their normal wages or salaries
(a)
Types of Benefits
HMO
Leave Benefits
Life Insurance
COLA
What are the importance of compenstion and benefits?
To attract talent
To retain talent
To increase productivity
to get more customers
A component of comensation and bnenefits wherein the employees are awarded shares of the company, often at discounted price
(a)
What the health checks mandated by Occupational, Health and Safety Act?
Pre-employment medical examination
Check up
Laboratory test
Annual medical examination
It is the criteria used to evaluate a job and based on which salary/wages of the employee is computed
(a)
Examples of compensable factors
Education
Variable pay
Health
Experience
What is/are the advantage/s of compensable factor?
Eliminates ambiguity for the evaluation procedure
Increases accountability of the firm
Every factor has certain weightage in the selection process
Parameters for deciding the pay might have created biases that can affect certain employees
It is the reward-earning behavior is likely to be repeated – employee would do the same thing again for which he was acknowledged once
(a)
It is the employee should feel the fairness in what they are being paid is in line with what other players in the same industry are paying to their employees for the same kind of job
Expectancy theory
External equity
Reinforcement theory
Agency theory
It is the employee is motivated to do a particular thing for which he is sure or is expected that performance will be followed by a definite reward or outcome
(a)
It contains widely publicized set of core principles, values and mutual expectations that are the foundations of employee pay
(a)
It Tells the organization how it will allocate employee pay based on its compensation philosophy
(a)
What are the compensation strategy components?
Compensation level
Affordability
Health
Benchmarking
What are the keys to effective compensation strategy?
Maintain legal compliance
Strategic planning
Budget allocation
Benchmarking
Organizational culture type focus on people, teamwork and cooperation
(a)
It is the organizational type focus on result, productivity and market position
Collaborate clan
Create adhocracy
Control Hierarchy
Compete market
What are the key requirements to develop total rewards philosophy?
Business strategy
Strategic planning
Management leadership
Human strategy
Large gap in salary (increase) between bottom performers and top performers
(a)
Higher salary reserved for those with exceptional performance
(a)
Pillars of Compensation System Policies
Internal alignment
Employee performance
External competitiveness
Business strategu
It refers to the pay relationships among different jobs/skills/competencies within a single organization
(a)
It allows organizations to explore the variance in a market for salaries and how that might affect the talent available
(a)
How does external competitiveness affect an organization?
Lower turnover rate
Business planning
Greater productivity
Business profit
It is how a member of staff fulfills the duties of their role, completes required tasks and behaves in the workplace
(a)
What is the objective of compensation and benefits management/administration?
Equitable pay
Business planning
Happy customer
Business profit
It is the systematic business practice wherein the company plans, determines, and creates an effective compensation or salary structure & policies for its employees
(a)
What are the objectives of compensation strategy?
Cost control
Ensure equity
Rewarding employee
Happy customer
How do we determine pay rates?
Management philosophy
Type of business
Gender difference
Company profitability
It is the packaged set of policies, methods, and procedures that guides professionals and line managers in the implementation of compensation strategy
(a)
It is the systematic process of identifying and determining the responsibilities, requirements, and nature of a job in detail
(a)
Aspects of job analysis
Requirements
Environment
Customers
Duties and tasks
The internal and external environment of the job
(a)
It is the internal document that specifies the requirements for a new position, including the required skills, role in the team, personality, and capabilities of a suitable candidate.
(a)
It is the process of placing one or more jobs into a cluster or family of similar positions
(a)
The process of determining the relative rank of different jobs in an organization
(a)
It is the process of creating a job that adds value to the company and is motivating to the employee
(a)
Importance of job analysis
Create detailed and accurate job postings that attract the skills and competencies you need
Create happy customers
Come up with great business strategy
Improve decision-making when recruiting and hiring new employees by easily tracking candidates with the required qualities and qualifications for the job
These are the behaviors that represent either outstanding or unacceptable performance
(a)
What are the different job evaluation method?
Ranking method/ pair comparison ranking
Budget allocation
Point-factor method
Customer satisfaction
It is based on an employee’s demonstrated mastery of a series of competencies that make them more valuable to the business
(a)
Why companies introduce skills-based pay
Make customers happy
Enhance employee satisfaction and retention
Achieve more profit
Improve competitiveness
•pay structure in which an employee is paid for the skills, knowledge and market relevance he or she possesses
(a)
It represents a level of compensation for employees in a certain position
(a)
It is the span of numbers from low to high that represent the minimum and maximum wages employers can pay an employee
(a)
How to build pay grades and salary ranges for fair and competitive wage standards?
Evaluate each position
Create business plan
Satisfy customers
Collect compensation data
It is the company programs that pay employees based on how they perform their job
(a)
Advantages of Pay-for-Performance
Establishes company values
Boost motivation and morale
Satisfy customers
Achieve profit-stability
- It is the type of employee compensation structure that uses certain rewards to motivate team members to work harder and achieve specific goals
(a)
It is an employee benefit plan that gives workers ownership interest in the company in the form of shares of stock.
(a)
Importnce of employee benefit
Attract talent
Improves employee retention
Promotes a healthy workforce
Achieve business goals
Provide 7 essential benefits for employees of a manufacturing company and provide justification for each.
What is the percentile distribution (e.g. 10%-20%-30) that is ideal for a medium-scale business for their minimum to maximum salary range? Provide justification.
