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Total 165 questions

Market Pricing - Conducting a Competitive Pay Analysis Questions and Answers

Question 1

When using market-based job evaluation, what percentage of jobs in the organization should be benchmarked?

Options:

A.

At least 80%

B.

At least 70%

C.

At least 60%

D.

At least 50%

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Question 2

What base pay structure designs are required to complete the job evaluation process?

Options:

A.

Job evaluation and performance management

B.

Job analysis and job documentation

C.

Salary surveys and employee benefits

D.

Compensation strategy and total rewards programs

Question 3

Which of the following data is typically requested by salary surveys?

Options:

A.

Job duties and responsibilities

B.

Work location

C.

Industry type

D.

Wage rate or salary

E.

All of the above

Question 4

What are some of the factors that influence compensation?

Options:

A.

Employee tenure and seniority

B.

Employee performance evaluations

C.

Employee benefits and perks

D.

External competitiveness and relevant labor market

Question 5

Which of the following is an advantage of a published survey?

Options:

A.

you may receive a substantial discount if you participate in the survey.

B.

Data is more reliable because it is self-reported

C.

It can be tailored to meet your needs and specifications

Question 6

If cost is a major factor, which of the following survey data sources would you lease likely consider?

Options:

A.

Published survey

B.

Custom third-party survey

C.

Complimentary survey

D.

Survey you conduct on your own

Question 7

What is one way market pricing supports an organization's business strategy?

Options:

A.

Provides key competitive information on how the organization's compensation levels compare to the market

B.

Achieves the goal that no employee should leave the organization due to pay issues

C.

Ensures that the organization will always lead the market regardless of financial resources

Question 8

Which of the following is a purpose of communication from an employer's perspective?

Options:

A.

Increase employee workload

B.

Decrease productivity

C.

Improve workplace safety

D.

Improve employee morale

Question 9

Which of the following is a characteristic of a good survey?

Options:

A.

Survey sources are identified.

B.

A limited sample size.

C.

Aggregate data is trimmed.

Question 10

What are the sources of survey data?

Options:

A.

Published surveys only

B.

Custom third-party surveys only

C.

Online reviews

D.

Employee feedback

E.

Both published surveys and custom third-party surveys

Question 11

What factors should be considered when aging the data in salary surveys?

Options:

A.

Different rates, market research, and salary increase movements

B.

Market research and aging factor

C.

Salary increase movements and aging over two calendar years

D.

Lead or lag approach and market research

E.

All of the above

Question 12

What are regression analysis outliers?

Options:

A.

Data points that are too high compared to the average

B.

Data points that are too low compared to the average

C.

Data points that are within the expected range

D.

Data points that are anomalies in comparison with other data points

Question 13

How do you measure the market for high-demand jobs?

Options:

A.

Focus on broadly defined job roles

B.

Focus on individual employees with specific skills

C.

Focus on internal value to the organization

Question 14

Which of the following is NOT a step in the job analysis process?

Options:

A.

Conducting a job description audit

B.

Collecting job analysis data

C.

Developing a job description and job specification

D.

Creating a job evaluation plan

Question 15

An organization that is new with few or no formal policies or procedures would most likely be at what stage of the business life cycle?

Options:

A.

Start-up

B.

Growth

C.

Mature

D.

Decline

Question 16

What is a primary objective of stock?

Options:

A.

To provide a stable source of income to employees

B.

To give employees ownership in the company

C.

To incentivize employees to work harder

D.

None of the above

Question 17

Who is best suited to communicate compensation information to individual employees?

Options:

A.

The HR Manager

B.

Senior executives

C.

Managers and supervisors (or the person to whom the employee directly reports)

Question 18

When Building a job worth hierarchy using market data, what is the purpose of using job descriptions?

Options:

A.

Verify survey data

B.

Analyze job content

C.

Identify benchmark jobs and match to survey job descriptions

D.

Identify relevant labor markets

Question 19

Choose the market position that matches the following description: The company's pay philosophy will stay ahead of the market the first half of the year, then fall behind the market.

Options:

A.

Lead

B.

Lead-lag

C.

Lag.

D.

Lag-Lead

Question 20

When is it appropriate to practice open communications regarding pay decisions?

Options:

A.

It is never appropriate; organizations should not share pay decisions with employees.

B.

If the organizational culture supports open communications

C.

If the organization's competitors practice open communications.

Question 21

What method can be used to establish a unique market rate for a hybrid job?

Options:

A.

Averaging

B.

Blending

C.

Extrapolation

D.

Regression

Question 22

What is the purpose of "aging" or "trending" the data in salary surveys?

Options:

A.

To adjust the data for inflation

B.

To adjust the data for changes in the job market

C.

To adjust the data for changes in the industry

D.

To adjust the data for changes in the survey methodology

Question 23

What makes compensation professional a valuable contributor in the organization's mission to succeed?

Options:

A.

Offering higher compensation than competitors

B.

Providing only monetary compensation

C.

Determine the right mix of reward components that meet the goals of attracting the right talent while staying within the budget

D.

Offering only non-monetary rewards

Question 24

What is usually located in an HRIS?

Options:

A.

Information related to individual employees

B.

Information related to groups of employees

C.

Spreadsheet applications useful for gathering and sorting information

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Total 165 questions