Total Rewards and Compensation 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 and Compensation flashcards as text
What is the main purpose of a job evaluation in compensation?
Answer: To establish the internal relative worth of jobs
Job evaluation ranks jobs by their value to the organization to support internal equity.
The point-factor method of job evaluation works by:
Answer: Assigning points to compensable factors and summing them
Point-factor evaluation scores jobs on compensable factors like skill, effort, and responsibility.
Under the Equal Pay Act, pay differences between men and women in the same job are permitted when based on:
Answer: A seniority system, merit system, or factor other than sex
The EPA allows differentials based on seniority, merit, quantity/quality of production, or any factor other than sex.
A 401(k) plan is an example of what type of retirement plan?
Answer: Defined contribution plan
In a defined contribution plan, contributions are defined but the final benefit depends on investment performance.
Which law governs the administration and fiduciary standards of most private-sector retirement plans?
Answer: ERISA
ERISA sets minimum standards for participation, vesting, funding, and fiduciary conduct in private plans.
Total rewards typically includes all of the following EXCEPT:
Answer: Competitor stock dividends
Total rewards encompasses pay, benefits, work-life, recognition, and development—not competitors' dividends.
An incentive plan that rewards employees for cost savings shared with the company is called:
Answer: Gainsharing
Gainsharing distributes a portion of measurable productivity or cost-saving gains back to employees.