Total Rewards Exam Study Guide
Solutions
Productivity-based pay - ANSWER✔✔-Pay based on the quantity of work
and outputs that can be accurately measured.
Remuneration surveys - ANSWER✔✔-Instruments that collect information
on prevailing market compensation and benefits practices (including
starting wage rates, base pay, pay ranges, statutory and market cash
payments, variable compensation, and paid time off).
Job evaluation - ANSWER✔✔-Process of determining a job's value and
price for the purpose of attracting and retaining employees by comparing
the job against other jobs within the organization or against similar jobs in
competing organizations.
Incentive pay - ANSWER✔✔-Form of direct compensation where
employers pay for performance beyond normal expectations to motivate
higher performance.
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,Job analysis - ANSWER✔✔-Process of systematically studying a job in
order to identify the activities/tasks and responsibilities it includes, the
personal qualifications necessary to perform it, and the conditions under
which it is performed.
Lump-sum increase (LSI) - ANSWER✔✔-One-time payment made to an
employee; also called performance bonus.
Point-factor system - ANSWER✔✔-Job evaluation method that looks at
compensable factors (such as skills and working conditions) that reflect
how much a job adds value to the organization; points are assigned to each
factor and then added to come up with an overall point value for the job.
Performance-based pay - ANSWER✔✔-Situation where an individual's
performance on the job is the basis for the amount and timing of pay
increases; also called merit pay or pay for performance.
Time-based step-rate pay - ANSWER✔✔-System in which pay is based on
longevity in the job and pay increases occur on a pre-determined schedule.
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, Merit pay - ANSWER✔✔-Situation where an individual's performance on
the job is the basis for the amount and timing of pay increases; also called
performance-based pay or pay for performance.
Single-rate pay - ANSWER✔✔-Provides each incumbent of a job with the
same rate of pay, regardless of performance or seniority; also known as
flat-rate pay.
Red-circle rates - ANSWER✔✔-Situations in which employees' pay is
above the range maximum.
Pay for performance (P4P, PfP) - ANSWER✔✔-Situation where an
individual's performance on the job is the basis for the amount and timing
of pay increases; also called merit pay or performance-based pay.
Cost-of-living adjustment (COLA) - ANSWER✔✔-Pay adjustment given to
eligible employees regardless of performance or organizational
profitability; usually linked to inflation.
Total rewards strategy - ANSWER✔✔-Plan or method implemented by an
organization that provides monetary, benefits-in-kind, and developmental
rewards to employees who achieve specific business goals.
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Solutions
Productivity-based pay - ANSWER✔✔-Pay based on the quantity of work
and outputs that can be accurately measured.
Remuneration surveys - ANSWER✔✔-Instruments that collect information
on prevailing market compensation and benefits practices (including
starting wage rates, base pay, pay ranges, statutory and market cash
payments, variable compensation, and paid time off).
Job evaluation - ANSWER✔✔-Process of determining a job's value and
price for the purpose of attracting and retaining employees by comparing
the job against other jobs within the organization or against similar jobs in
competing organizations.
Incentive pay - ANSWER✔✔-Form of direct compensation where
employers pay for performance beyond normal expectations to motivate
higher performance.
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 1/23
,Job analysis - ANSWER✔✔-Process of systematically studying a job in
order to identify the activities/tasks and responsibilities it includes, the
personal qualifications necessary to perform it, and the conditions under
which it is performed.
Lump-sum increase (LSI) - ANSWER✔✔-One-time payment made to an
employee; also called performance bonus.
Point-factor system - ANSWER✔✔-Job evaluation method that looks at
compensable factors (such as skills and working conditions) that reflect
how much a job adds value to the organization; points are assigned to each
factor and then added to come up with an overall point value for the job.
Performance-based pay - ANSWER✔✔-Situation where an individual's
performance on the job is the basis for the amount and timing of pay
increases; also called merit pay or pay for performance.
Time-based step-rate pay - ANSWER✔✔-System in which pay is based on
longevity in the job and pay increases occur on a pre-determined schedule.
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/23
, Merit pay - ANSWER✔✔-Situation where an individual's performance on
the job is the basis for the amount and timing of pay increases; also called
performance-based pay or pay for performance.
Single-rate pay - ANSWER✔✔-Provides each incumbent of a job with the
same rate of pay, regardless of performance or seniority; also known as
flat-rate pay.
Red-circle rates - ANSWER✔✔-Situations in which employees' pay is
above the range maximum.
Pay for performance (P4P, PfP) - ANSWER✔✔-Situation where an
individual's performance on the job is the basis for the amount and timing
of pay increases; also called merit pay or performance-based pay.
Cost-of-living adjustment (COLA) - ANSWER✔✔-Pay adjustment given to
eligible employees regardless of performance or organizational
profitability; usually linked to inflation.
Total rewards strategy - ANSWER✔✔-Plan or method implemented by an
organization that provides monetary, benefits-in-kind, and developmental
rewards to employees who achieve specific business goals.
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 3/23
