Question 1

What is the purpose of range overlap?

Options :

A : To establish pay differentials within a grade

B : To determine the market competitiveness of a pay structure

C : To provide flexibility in administering pay increases

D : To minimize compression and maintain pay progression

Answer: D

Question 2

What is single rate pay?

Options :

A : Pay based on individual performance and contributions

B : Pay based on a fixed rate or predetermined salary

C : Pay based on a variable bonus or incentive structure

D : Pay based on market competitiveness and job level

Answer: B

Question 3

What are three merit pay guidelines that can be used?

Options :

A : Consumer price index, market survey data, and employee performance

B : Pay compression, salary structure, and cost of living adjustments

C : Budget constraints, seniority, and employee tenure

D : Market competitiveness, internal equity, and employee contributions

Answer: D

Question 4

What are advantages of a periodic pay increase?

Options :

A : Long-term impact on base salary and employee retention

B : Immediate recognition of performance and cost savings for the company

C : Alignment with market practices and fairness in pay administration

D : Increased motivation and recognition of employee contributions

Answer: A

Question 5

What are considerations for geographic pay differentials?

Options :

A : Cost of living variations and local labor markets

B : Individual performance ratings and merit-based pay

C : Skill development and career progression opportunities

D : Budget constraints and financial sustainability

Answer: A