Exam 8: Designing Pay Levels, mix, and Pay Structures

Setting your company's base pay to competitors' total compensation risks high fixed costs.

Explain the market pricing approach to compensation.

The primary responsibility for conducting a pay survey is _____.

Salary data available to employees via the Internet are as reliable and accurate as other more traditional surveys.

Regression smoothes large amounts of data while minimizing variations.

Which of the following statistical measures shows how similar or dissimilar the market rates are from each other?

Aging market data to a point halfway through the plan year is called _____.

The first step in interpreting survey data is _____.

Career moves between bands are more common than within bands.

A market pay line _____.

This measure of compensation may overstate competitors' pay.

When there is an unusual level of turnover in a job,an employer is likely to conduct a market survey.

The final step in determining externally competitive pay levels and structures is merging internal and external pressure.

Pay ranges:

Pay ranges for managerial jobs are larger than ranges for other jobs because these jobs have greater opportunity for both discretion and performance than lower level jobs.

A company using a skill-based pay system prices the job of lead assembler at between $10 and $22 per hour.Survey data showed the job assembler averaged $10 per hour and the job of assembly supervisor at $22 per hour.The company was using the _____ method of job matching.

The answer to the question of how many firms to include in a pay survey is _____.

The second major decision in pay-level determination is _____.

A survey conducted in January,2007 found the median pay effective January 1,2007,for a clerk was $20,000 and the forecast rate of wage increases in the market for 2007 of was 5% and another 5% for 2008.If an employer chooses to follow a strategy of lagging the market by 3% for the plan year 2008,they will need to _____.

Explain the concept of pay ranges.