WORLD AT WORK C17 MARKET PRICING
COMPLETE EXAMINATION TEST
QUESTIONS WITH VERIFIED SOLUTIONS
●● Market-based Pay Structure Design Steps - Step 2
Answer: Identify/select benchmark jobs
- Job descriptions
- Benchmark job set
- Validate benchmark job matches with leadership team
●● Market-based Pay Structure Design Steps - Step 3
Answer: Identify/select relevant labor markets
- Labor markets vary based on type or group of job
●● Market-based Pay Structure Design Steps - Step 4
Answer: Identify salary survey sources
- Choose surveys reflective of your labor market and benchmark jobs
*Published survey sources
* Custom Surveys
●● Market-based Pay Structure Design Steps - Step 5
,Answer: Collect and analyze data for benchmark jobs
- At least 50% of jobs
- Jobs matched with data
- Composite is determined
- Assess competitiveness
●● Market-based Pay Structure Design Steps - Step 6
Answer: Develop midpoints for each grade in the pay structure
- Range midpoints
* Reflect organization's pay policy
* Lowest to highest
●● Market-based Pay Structure Design Steps - Step 7
Answer: Assign benchmark jobs to the structure
- Closest midpoint to market rate composite
●● Market-based Pay Structure Design Steps - Step 8
Answer: Slot nonbenchmark jobs into the structure
- Compare nonpriced to priced
- Assign grades
●● Slotting - Key Considerations
, Answer: Define job: define the criteria for comparing jobs (typically
skill, effort, responsibilities and working conditions.)
Consider value: Relative to other jobs within job family or function and
Relative to jobs in other functions
Supervisor/subordinate jobs: Ensure appropriate distance between the
jobs. Typically 15%-20%
●● Market-Based Pay Structure - key elements
Answer: - Uses points of best fit for min, midpoint, max
- Easier transition from internally-based methods
- Balances external market with internal equity
●● Pure Market Pricing - key elements
Answer: - Uses pure market points P25, P50, P75
- Fluctuates along with marketplace
- Simple to understand
- Correlates with current data available
●● Market-Based Job Evaluation and Pay Structure Design
Advantages
Answer: - Simple to administer and update for currency
COMPLETE EXAMINATION TEST
QUESTIONS WITH VERIFIED SOLUTIONS
●● Market-based Pay Structure Design Steps - Step 2
Answer: Identify/select benchmark jobs
- Job descriptions
- Benchmark job set
- Validate benchmark job matches with leadership team
●● Market-based Pay Structure Design Steps - Step 3
Answer: Identify/select relevant labor markets
- Labor markets vary based on type or group of job
●● Market-based Pay Structure Design Steps - Step 4
Answer: Identify salary survey sources
- Choose surveys reflective of your labor market and benchmark jobs
*Published survey sources
* Custom Surveys
●● Market-based Pay Structure Design Steps - Step 5
,Answer: Collect and analyze data for benchmark jobs
- At least 50% of jobs
- Jobs matched with data
- Composite is determined
- Assess competitiveness
●● Market-based Pay Structure Design Steps - Step 6
Answer: Develop midpoints for each grade in the pay structure
- Range midpoints
* Reflect organization's pay policy
* Lowest to highest
●● Market-based Pay Structure Design Steps - Step 7
Answer: Assign benchmark jobs to the structure
- Closest midpoint to market rate composite
●● Market-based Pay Structure Design Steps - Step 8
Answer: Slot nonbenchmark jobs into the structure
- Compare nonpriced to priced
- Assign grades
●● Slotting - Key Considerations
, Answer: Define job: define the criteria for comparing jobs (typically
skill, effort, responsibilities and working conditions.)
Consider value: Relative to other jobs within job family or function and
Relative to jobs in other functions
Supervisor/subordinate jobs: Ensure appropriate distance between the
jobs. Typically 15%-20%
●● Market-Based Pay Structure - key elements
Answer: - Uses points of best fit for min, midpoint, max
- Easier transition from internally-based methods
- Balances external market with internal equity
●● Pure Market Pricing - key elements
Answer: - Uses pure market points P25, P50, P75
- Fluctuates along with marketplace
- Simple to understand
- Correlates with current data available
●● Market-Based Job Evaluation and Pay Structure Design
Advantages
Answer: - Simple to administer and update for currency
