Question 1

How are midpoint-to-midpoint differentials calculated?

Options :

A : By subtracting the midpoint of one pay range from the midpoint of another

B : By comparing the highest and lowest pay ranges within a structure

C : By calculating the percentage difference between two midpoints

D : By conducting a regression analysis of pay rates across the organization

Answer: C

Question 2

What is a reason for establishing a job worth hierarchy?

Options :

A : To determine appropriate placement of anchor points during the job evaluation

B : To prove that job grades are not needed in an organization.

C : To establish midpoint differentials for managers and subordinates

D : To determine equity among both positions and groups of positions.

Answer: D

Question 3

What does it mean to lag the market?

Options :

A : Paying employees below the market rate

B : Paying employees above the market rate

C : Paying employees at the market rate

D : Adjusting pay based on market fluctuations

Answer: A

Question 4

What is variable pay?

Options :

A : Compensation that varies based on performance

B : Compensation that remains constant regardless of performance

C : Compensation that includes both fixed and variable components

D : Compensation that is determined by market data

Answer: A

Question 5

What does it mean to lead-lag the market?

Options :

A : Adjusting pay based on employee performance

B : Paying employees below the market rate initially, then catching up over time

C : Paying employees above the market rate initially, then adjusting down over time

D : Adjusting pay based on market benchmarks and internal considerations

Answer: D