C17 Market Pricing - Conducting a Competitive Pay Analysis Questions and Answers

Conducting a job description audit

Collecting job analysis data

Developing a job description and job specification

Creating a job evaluation plan

Employee engagement data, company revenue, market share

Job pricing worksheet, market index of competitiveness, graphic representation

Employee turnover rates, training hours, safety record

Customer satisfaction data, product quality metrics, innovation metrics

Long-term incentives

Direct benefits expenses

Event tickets

At least 30%

At least 50%

At least 70%

At least 90%

A physical representation of an object

A software application used for data analysis

A type of job analysis

A representation of part of reality, used to understand relationships between data sets

Internal pay equity

Employee job satisfaction

External market pricing or competitiveness

Employee engagement

Company's financial equity

Employee engagement level

Employee perceptions and consistency, views of fairness

Market competitiveness

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

You can customize the survey to meet your specific needs

You have full control over the survey data and methodology

You can negotiate the survey pricing with the vendor

You may receive a substantial discount if you participate in the survey

The geographic location of the companies reported in the survey

The job levels reported in the survey

The quality of the survey vendor

All of the above

By offering above-market pay to attract higher performing employees

By offering below-market pay to save costs

By providing poor work environment

By offering market level pay

The extent to which the survey has been audited

The number of jobs matches found in the survey

The availability of the results in both hard copy and electronic form

General information and vague messages

Inaccurate information and specific messages

Accurate information and vague messages

Accurate information and specific messages

A letter to an employee announcing a promotion

A letter to an employee terminating their employment

A letter to a candidate offering them a job

A letter to an employee outlining their performance evaluation

Compensation structure

Job description

Performance evaluation

Employee benefits

Compensation philosophy

Compensation philosophy and strategy only

Quality of surveys only

Quality of job match only

Sample size only

Compensation philosophy and strategy, quality of surveys, quality of job match, sample size

Start-Up

Growth

Mature

Decline

Retention bonuses

Spot bonuses

Project completion bonuses

Annual bonuses

Any market inequities are built in

Simple to administer

Takes into consideration the company's perceived value of a job

Legally defensible based on job content

Combine into one factor, then age

Age both years first, then subtract the second year

Age one year first, then age the second year

Published survey

Custom third-party survey

Complimentary survey

Survey you conduct on your own

It is never appropriate; organizations should not share pay decisions with employees.

If the organizational culture supports open communications

If the organization's competitors practice open communications.

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

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

Awarded pertains to profit sharing plans while target pertains to performance.

Target represents what was actually paid, awarded represents what would be paid if the plan pays out at expected levels.

Awarded represents what was actually paid, target represent what would be paid if the plan pays out at expected levels.

Survey sources are identified.

A limited sample size.

Aggregate data is trimmed.

Restricted stock units and stock options

Stock appreciation rights and deferred stock units

Phantom stock and performance shares

All of the above

A system for distributing bonuses to employees

A set of policies and procedures for administering employee pay

The organization's approach to paying employees

The specific salary levels and ranges for each job in the organization

Pay range

Market rate composite

Slotting

Pay policy

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

It is never appropriate; organizations should not share pay decision?

If the organization culture supports open communications.

If the organization's competitors practice open communications.

combine into one factor, then age

Age both years first, then subtract the second year

Age on year first, then age the second year

Only when pay decisions are positive

If the HR department supports open communication

If employees have a union representative

If the organizational culture supports open communication

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

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

The HR Manager

Senior Executives

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

Increase workplace hierarchy

Decrease workload

Clarify expectations

Eliminate the need for feedback

you may receive a substantial discount if you participate in the survey.

Data is more reliable because it is self-reported

It can be tailored to meet your needs and specifications

The number of participants in each survey used to price the job

The name of the survey vendor used for each survey

The method of aging the data from multiple surveys to a common point in time

The specific individuals who conducted the job evaluation

You may receive a substantial discount if you participate in the survey

Data is more reliable because it is self-reported

It can be tailored to meet your needs and specifications

To determine which jobs should be grouped together and form the foundation of the base pay system

To assign grades to non-benchmarked jobs

To determine internal and external equity

To adjust pay rates based on cost-of-living adjustments

Wage rate or salary.

Employee gender

Employee age

Collecting information about the company's financials

Identifying the company's best and worst employees

Benchmarking against competitors' pay practices

Conducting internal surveys of employee satisfaction

Median

Mode

Mean

Trimmed mean

Range

Survey sources are identified

A limited sample size

Aggregate data is trimmed

Market pricing

Wage and salary surveys

Pay compression

Cost-of-living adjustments