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

Employee tenure and seniority

Employee performance evaluations

Employee benefits and perks

External competitiveness and relevant labor market

Provides key competitive information on how the organization's compensation levels compare to the market.

Provides a clear understanding of the organization's business strategy.

Provides key competitive information on the organization's products and services.

Provides information on the organization's employee demographics.

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

At least 30%

At least 50%

At least 70%

At least 90%

Increased survey participation

Improved data accuracy

Faster survey completion time

Lower survey costs

Pay philosophy, job tenure, variations in responsibility

Job title, geographic location, industry sector

Company size, job level, education level

Age, gender, race

By offering poor benefits

By offering a toxic work culture

By offering no work flexibility

By providing benefits, company cultures, work flexibility, or career development opportunities

Job evaluation method

Market pricing method

Point factor method

Maturity curves

When market data are not available for a specific job

When an organization is undergoing a restructuring process

When an employee is promoted to a higher position

When an organization is experiencing financial difficulties

Median

Range

Mode

Unweighted mean

Weighted mean

The minimum pay rate for a job

The maximum pay rate for a job

The range of pay rates for a job

The midpoint pay rate for a job

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.

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

The price of the survey source and whether it has increased over time

The average time needed to match a job to the survey source

How many times per year the survey source is updated

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

Combine into one factor, then age

Age both years first, then subtract the second year

Age one year first, then age the second year

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.

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

Financial strategy

Marketing strategy

Production strategy

Human resources strategy

Information technology strategy

A ranking of jobs based on the number of years of experience required

A ranking of jobs based on the level of education required

A ranking of jobs based on their worth to the organization

The process of grouping or categorizing jobs relative to other jobs, based on factors such as skills, responsibilities, and pay level

Provides key competitive information on how the organization's compensation levels compare to the market

Achieves the goal that no employee should leave the organization due to pay issues

Ensures that the organization will always lead the market regardless of financial resources

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

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

Statement of what the organization believes about its products and services.

Statement of what the organization believes about its competitors.

Statement of what the organization believes about its customers.

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

A process for determining the value of a job relative to other jobs in the organization

A process for setting individual performance goals for employees

A process for calculating bonuses for employees

A process for conducting interviews with job candidates