WorldatWork C17 Market Pricing - Conducting a Competitive Pay Analysis Exam Practice Test

By taking the average of reported salaries

By taking the median of reported salaries

By using a statistical formula to determine the range

By taking the highest and lowest reported salaries and creating a range

Conducting a job description audit

Collecting job analysis data

Developing a job description and job specification

Creating a job evaluation plan

Compensation structure

Job description

Performance evaluation

Employee benefits

Compensation philosophy

Conducting own survey

Custom third-party surveys

Published surveys

All of the above

Below the minimum wage

The median salary range

Above the median salary range

At the maximum salary range

Submissions, data accuracy, survey vendor auditing

Survey response rate, survey participant demographics, survey topic relevance

Survey cost, survey methodology, survey timing

Survey participant anonymity, survey vendor reputation, survey incentives

To establish a hierarchy of job titles within an organization

To determine an employee's overall worth to the organization

To ensure external equity among positions and groups of positions

To determine internal equity among positions and groups of positions

To determine the minimum wage for a job

To determine the maximum wage for a job

To determine the average wage for a job

To match the job duties and responsibilities with a similar job in the survey data

Market from which an organization draws and loses its employees.

Market from which an organization sources its materials.

Market from which an organization sells its products and services.

Market from which an organization sources its funding.

Spot bonuses

Performance bonuses

Incentive bonuses

Performance sharing

The combination of base pay, benefits, and bonuses that an employee receives

The total value of all compensation and benefits paid to employees in a given year

The rewards and recognition programs offered by an organization to motivate employees

The sum of all compensation and benefits paid to an employee over the course of their career

By aligning with the organization's business strategy

By using a standardized approach for all employees

By offering the highest salaries in the market

By providing only monetary rewards

By using a complex compensation structure

Internal pay equity

Employee job satisfaction

External market pricing or competitiveness

Employee engagement

The HR Manager

Senior Executives

Managers and supervisors (or the person to whom the employee directly reports).

Estimating the change in market rates for jobs based on scope data

Determining the market rate composite from several survey sources

Determining the premium for a hybrid job

Financial strategy

Marketing strategy

Production strategy

Human resources strategy

Information technology strategy

Different rates, market research, and salary increase movements

Market research and aging factor

Salary increase movements and aging over two calendar years

Lead or lag approach and market research

All of the above

Survey sources are identified.

A limited sample size.

Aggregate data is trimmed.

Traditional surveys focus on salary data, while market pricing surveys focus on pay structures

Traditional surveys are based on self-reported data, while market pricing surveys rely on compensation data from multiple sources

Traditional surveys are used by employers to determine internal pay structures, while market pricing surveys are used to determine external pay competitiveness

There is no difference between the two survey types

Easy to understand and explain, aligned with internal equity, accurate for all types of jobs, provides high degree of transparency

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

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

Based on job content, provides flexibility for job evaluation, accurate for all types of jobs, requires less market data

Pay range

Market rate composite

Slotting

Pay policy

Estimating the change in market rates for jobs based on scope data

Determining the market rate composite from several survey sources

Determining the premium for a hybrid job

Age both years at the same time

Age the second year first, then the first year

Age both years separately

Age one year first, then age the second year

By setting compensation rates based on employee tenure

By setting compensation rates based on employee performance

By setting compensation rates based on employee qualifications

By setting compensation rates based on the prevailing rates for jobs in the current market place

By setting compensation rates based on the company's financial performance