Question 1

Which of the following describes a characteristic of single-rate pay?

Options :

A : Different pay rates for different job levels

B : Pay based on individual performance

C : Pay based on market benchmarks

D : Same pay rate for all employees in a job category

Answer: D

Question 2

What are disadvantages to a periodic pay increase?

Options :

A : Limited immediate recognition of performance and potential for cost inefficiency

B : Inconsistency with market practices and potential for pay compression

C : Increased administrative complexity and difficulty in budgeting

D : Increased administrative complexity and difficulty in budgeting

Answer: C

Question 3

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 4

What are approaches to hazard pay differentials?

Options :

A : Fixed percentage differentials and market-based differentials

B : Point factor evaluations and job analysis

C : Cost of living adjustments and salary surveys

D : Hazard risk assessments and industry standards

Answer: D

Question 5

What are the two elements of compensation?

Options :

A : Fixed pay and variable pay

B : Base pay and performance pay

C : Salary and benefits

D : Bonuses and incentives

Answer: A

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