Total Rewards Flashcards
7 cards from real PHR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Total Rewards flashcards as text
Total rewards encompasses which broad combination of elements?
Answer: Compensation, benefits, and non-monetary rewards
Total rewards includes compensation, benefits, work-life, recognition, and development opportunities.
Which pay-for-performance element provides a permanent increase to base pay based on individual results?
Answer: Merit increase
A merit increase permanently raises base pay according to individual performance.
When external pay rates rise faster than internal pay adjustments, this creates pressure known as:
Answer: Pay compression
Lagging internal adjustments behind market rates produce pay compression among existing employees.
Which document communicates the full value of an employee's pay and benefits package?
Answer: Total compensation statement
A total compensation statement summarizes the full monetary value of pay and benefits for the employee.
An employer's matching contribution to a 401(k) plan is an example of what reward category?
Answer: Indirect compensation (benefits)
Retirement plan matches are indirect compensation, a form of employee benefit.
Which principle ensures employees in comparable jobs within an organization are paid fairly relative to one another?
Answer: Internal equity
Internal equity ensures fairness in pay relationships among jobs inside the organization.
Paid time off, flexible scheduling, and remote work options fall under which total rewards component?
Answer: Work-life effectiveness
Work-life effectiveness includes flexibility and time-off programs that support employee well-being.