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47 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Elements of compensation are |
Fixed pay Variable pay |
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Base pay is |
Non discretionary compensation that does not vary according to results achieved |
Aka fixed pay |
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The organizations philosophy and pay structure typically determines what? |
Base pay |
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Pay at risk is also known as |
Variable pay |
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Compensation innovation is occurring in what type of pay element |
Variable pay |
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Name 7 factors influencing compensation |
Competitive environment Unions Global growth Economics Business strategy Life cycle of the organization Legal compliance |
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When in growth mode, organizations are significantly influenced by what |
Competitive environment |
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What 3 aspects of economics influence leaderships receptiveness to new comp programs |
Health of economy Unemployment levels General business state |
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Desired market position is |
A piece of comp philosophy |
A part of |
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Principles that guide design, implementation and administration of comp program |
Comp strategy |
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Alignment between business strategy and comp philosophy and strategy may emphasize what |
Long and short term pay levels |
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Mature organizations are challenged by what when designing comp programs |
Heavy retirement liability |
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What are the 5 steps in base pay structure design |
Job analysis Job documentation Job evaluation Job worth hierarchy Base pay structure |
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A structured process to determine the value of positions relative to one another using market data |
Market based job evaluation |
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What does job analysis provide |
Ability to develop job worth hierarchy
Basis for legal and regulatory compliance
Identify career paths |
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Quantitative methods of job evaluation are |
Point factor Job component |
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Ranking and classification are two different methods of |
Nonquantitative job evaluation approaches |
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If 70% or more of the job content is similar, the job match is considered |
Good |
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Grouping similar jobs together is known as |
Job worth hierarchy |
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Establishing a relationship between jobs following the job evaluation step is part of |
Creating the job worth hierarchy |
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Used to determine the internal and external equity of positions |
Job worth hierarchy |
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Job content uses |
Internal data |
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A management tool that reflects the collection of internal and external comp data to support job values |
Base pay structure |
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Creates alignment between work and rewards
Helps organization achieve objectives
Reflects the desired market position |
Objectives of the base pay structure |
3 |
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Pay bands should |
Overlap Distinguish between skill Allow for career progression |
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Types of base pay |
Salary Hourly Piece rate |
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Pay increases such as merit pay, step rate, lump sum, etc are known as |
Pay adjustments |
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COLA is |
A pay adjustment made to keep up with inflation |
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What are some examples of pay differentials? |
Shift Weekend Holiday Expatriate Geographic Language |
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One type of equity based LTI based on the attainment of certain performance measures is |
Performance unit plan |
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Considerations in equity based plans are |
Taxation to the employee Tax deduction to company Exchange rate flux Local registration of stock Integration with other benefits Employee appreciation
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Commissions are |
Short term incentive plan for sales employees |
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Why might you receive a bonus |
Rewards given for the completion of a specific task or objective |
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Examples of bonus plans |
Retention Sign on Referral Project completion |
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Characteristics of a recognition plan |
Broadly defined criteria Subjective Spontaneously awarded Focused on behaviors Can be monetary or nonmonetary Budgeted |
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What is the best way to determine pay decisions |
Using job related factors |
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Collecting competitors pay data is a job evaluation method known as |
Market pricing |
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Pay adjustments are usually |
Equity or market based |
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Variable pay |
Rewards for accomplishments and results |
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Name three aspects of variable pay |
Can be based on organizational, group, or individual results
Performance based
Flexible and adaptable |
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Incentives, commissions, bonuses, recognition are examples of |
Variable pay |
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What type of variable Pay plan has criteria determined in advance |
Incentive plans |
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Profit sharing is an example of |
A short term incentive plan based on a predetermined formula. Usually financial based. |
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Long term incentive plans that are equity based usually are |
Stock options Stock grants Restricted stock Performance unit plans |
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Right to purchase stock at a certain rate is |
Stock options |
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No cost stock |
Stock grant |
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Stock with prohibitions on when to sell or transfer |
Restricted stock |
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