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Market Pricing - Conducting a Competitive Pay Analysis Questions and Answers

Questions 1

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

Questions 2

What are the disadvantages of using job ranking for job evaluation and pay structure design?

Options:

A.

May be difficult to obtain data, may not be aligned with internal equity, not defensible on job content basis, may be overly time consuming

B.

Simple to administer and update for currency, responsive to the market, not overly time consuming compared to other methods, high degree of transparency

C.

Does not consider market rates, limited in accuracy, subjective, not useful for large organizations

D.

May not accurately reflect job value, subjective, may not be useful for small organizations

Questions 3

A compensation philosophy includes which of the following?

Options:

A.

Information about each job in an organization?

B.

Information necessary to complete the job evaluation process.

C.

Principles that guide the design, implementation and administration of a compensation program.

D.

Statement of what the organization believes about how people should be rewarded.

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