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

Grades group job evaluation data on the horizontal axis.

What are the advantages and disadvantages of the different measures of compensation?

Which of the following is true regarding the Employment Cost Index (ECI)?

Explain the low-high approach in selecting jobs for inclusion in a compensation survey.

Who should be involved in designing a compensation survey?

The _____ publishes extensive information on various occupations in different geographic areas.It is a major source of publicly available compensation data.

A pay range exists when at least two employees in the same job are paid different rates.

Ranges support flexibility within guidelines while bands support some flexibility within controls.

In the regression equation,y = a + bx,job evaluation points are _____.

Pay surveys include information about both all forms of cash compensation and benefits.

You work in a midsize organization and have just conducted a wage survey.Five midsize companies have provided wage data for a particular job.Here are the numbers. Which of the following statistics will be the most accurate reflection of the market rate?

The relevant labor market for accounting,sales or clerical skills should be limited to each industry in which these types of work are found.

An organization that has a match (pay)policy will pay its employees:

What is a survey? What purpose does it serve in terms of compensation?

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.An employer choosing to follow a lead strategy of 4% above the market for the plan year,will need to _____.

The pay structure is reflected in job evaluation or skill certification.

Because employers are raising employee pay at various times during the year,survey data must be updated using a process called _____ or _____.

_____ shows how competitors value work in similar jobs.

What is broad banding? What are some of its advantages?

Applying the job evaluation process to pay survey jobs to assess the degree of match between survey jobs and benchmark jobs is called the _____ approach.