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Classification and Compensation Studies Flashcards

7 cards from real CODESP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Classification and Compensation Studies flashcards as text

  1. A pay compression problem exists when:

    Answer: The pay difference between new hires and experienced employees narrows significantly

    Pay compression occurs when market-driven starting salaries rise faster than incumbents' pay, eroding the differential between new and experienced employees.

  2. Which approach to market pricing uses regression analysis to establish a salary line that best fits the relationship between job evaluation points and market pay rates?

    Answer: Policy line or pay line

    A policy or pay line is plotted using regression analysis to show the relationship between internal job worth (points) and external market rates.

  3. Under the FLSA, which category of employee is NOT exempt from overtime pay requirements?

    Answer: A non-supervisory office clerk earning $45,000 annually

    Non-supervisory clerical workers generally do not meet the duties test for any FLSA white-collar exemption and are entitled to overtime.

  4. In a CODESP classification study, what does the concept of 'class specification' describe?

    Answer: A document defining the characteristics, duties, and qualifications common to a class of positions

    A class specification establishes the general definition, distinguishing characteristics, and minimum qualifications for all positions allocated to a job class.

  5. What does a compa-ratio of 0.85 indicate about an employee's pay relative to the midpoint of their pay grade?

    Answer: The employee is paid 15% below the midpoint

    A compa-ratio below 1.0 means the employee's salary is below the pay grade midpoint; 0.85 means they earn 85% of the midpoint (15% below).

  6. Which type of pay structure is most appropriate for organizations that want to reward employees for gaining broader skills across multiple functions rather than moving up a hierarchy?

    Answer: Skill-based or competency-based pay

    Skill-based or competency-based pay rewards employees for mastering additional skills or competencies, supporting lateral development and workforce flexibility.

  7. When a jurisdiction reallocates a position to a lower classification, this action is commonly called a:

    Answer: Reclassification downward or demotion in class

    Reallocating a position to a lower class—a downward reclassification—occurs when a study shows the actual duties no longer support the higher class.