ALL (2025-2026) QUESTIONS AND
ANSWERS.
Directkfinancialkcompensationk-kCORRECTkANSWER-
compensationkreceivedkinkthekformkofksalary,kwages,kcommissions,kstockkoptionskorkbo
nuses
indirectkfinancialkcompensationk-kCORRECTkANSWER-
allkthektangiblekandkfinanciallykvaluedkrewardskthatkareknotkincludedkinkdirectkcompensa
tionkincludingkfreekmeals,kvacationktimekandkhealthkinsurance
nonfinancialkcompensationk-kCORRECTkANSWER-
rewardskandkincentiveskgivenktokemployeeskthatkaren'tkfinancialkinknature
basekpayk-kCORRECTkANSWER-
reflectsktheksizekandkscopekofkankemployee'skresponsibilities
severancekpayk-kCORRECTkANSWER-
givektokemployeeskuponkterminationkofktheirkemployment
fixedkpayk-kCORRECTkANSWER-
payskemployeeskaksetkamountkregardlesskofkperformance
variablekpayk-kCORRECTkANSWER-
basesksomekorkallkofkankemployee'skcompensationkonkemployee,kteam,korkorganization
al
paykstructurek-kCORRECTkANSWER-
thekarraykofkpaykrateskforkdifferentkworkkorkskillskwithinkaksinglekorganization
paykmixk-kCORRECTkANSWER-
thekrelativekemphasiskgivektokdifferentkcompensationkcomponents
paykleaderk-kCORRECTkANSWER-
organizationkwithkakcompensationkpolicykofkgivingkemployeeskgreaterkrewardskthankco
mpetitors
paykfollowerk-kCORRECTkANSWER-ankorganizationkthatkpayskitskfront-
linekemployeeskasklittlekaskpossible
,resourcekdependencektheoryk-kCORRECTkANSWER-
propositionkthatkorganizational kdecisionskarekinfluencedkbykbothkinternalkandkexternalka
gentskwhokcontrolkcriticalkresources
wagekdifferentialsk-kCORRECTkANSWER-
differenceskinkwagekbetweenkvariouskworkers,kgroupskofkworkers,korkworkerskwithinkakc
areerkfield
laborkmarketk-kCORRECTkANSWER-
allkofkthekpotentialkemployeesklocatedkwithinkakgeographickareakfromkwhichkthekorganiz
ationkmightkbekablektokhire
costkofklivingkallowancesk-kCORRECTkANSWER-
clauseskinkunionkcontactskthatkautomaticallykincreasekwageskbasekonkthekU.S.kBureauk
ofkLaborkStatistics'kcostkofklivingkindex
marketkpricingk-kCORRECTkANSWER-
useskexternalksourceskofkinformationkaboutkhowkotherskarekcompensatingkakcertainkpos
itionktokassignkvaluektokakcompany'sksimilarkjob
Compensationksurveysk-kCORRECTkANSWER-
surveyskofkotherkorganizationskconductedktoklearnkwhatktheykarekpayingkforkspecifickjob
skorkjobkclasses
benchmarkkjobsk-kCORRECTkANSWER-
jobskthatktendktokexistkacrosskdepartmentskandkacrosskdiversekorganizationskallowingkt
hemktokbekusedkaskakbasiskforkcompensationkcomparisons
jobkevaluationk-kCORRECTkANSWER-
aksystematickprocesskthatkuseskexpertkjudgementktokassesskdifferenceskinkvaluekbetwe
enkjobs
rankingkmethosk-kCORRECTkANSWER-
subjectivelykcompareskjobsktokeachkotherkbasedkonktheirkoverallkworthktokthekorganizati
on
jobkclassificationkmethodk-kCORRECTkANSWER-
subjectivelykclassifieskjobskintokankexitingkhierarchykofkgradeskandkcategories
pointkfactorkmethodk-kCORRECTkANSWER-
useskaksetkofkcompensablekfactorsktokdeterminekakjob'skvalue.kskill,kresp,keffort,kworkin
gkcond.
compensablekfactork-kCORRECTkANSWER-
anykcharacteristickusedktokprovidekakbasiskforkjudgingkakjob'skvalue
,skills,kresponsibilities,keffort,kworkingkconditionsk-kCORRECTkANSWER-
Fourkcategorieskofkcompensablekfactors
HaykGroupkGuidekChartk-kProfilekMethodk-kCORRECTkANSWER-akpoint-
factorksystemkiskusedktokproducekbothkakprofilekandkakpointkscorekforkeachkposition.
knowkhow
problemksolving
accountability
workingkconditions
Know-how,kproblemksolving,kaccountability,kworkingkconditionsk-kCORRECTkANSWER-
HaykGroupkMethodkbasedkonkfourkmainkfactors
PositionkAnalysiskQuestionnairek-kCORRECTkANSWER-
akstructuredkjobkevaluationkquestionnairekthatkiskstatisticallykanalyzedktokcalculatekpaykr
ateskbasedkonkhowktheklaborkmarketkiskvaluingkworkerkcharacteristics.kakcopyrighted,kst
andardized,kstructuredkjobkanalysiskquestionnaire.k6ksectionskcoveringk187kjobkelement
s.
jobkpricingk-kCORRECTkANSWER-
thekgenerationkofksalarykstructureskandkpayklevelskforkeachkjobkbasedkonkthekjobkevalu
ationkdata
singlekrateksystem,kpaykgradeskandkbroadbandingk-kCORRECTkANSWER-
Threekmostkcommonkjobkpricingksystems
paykgradek(paykscale)k-kCORRECTkANSWER-
thekrangekofkpossiblekpaykforkakgroupkofkjobs
broadbandingk-kCORRECTkANSWER-
usingkverykwidekpaykgradesktokincreasekpaykflexibility
internalkequityk-kCORRECTkANSWER-
whenkemployeeskperceivektheirkpayktokbekfairkrelativektokthekpaykofkotherkjobskinkthekor
ganization
employeekequityk-kCORRECTkANSWER-
thekperceivedkfairnesskofkthekrelativekpaykbetweenkemployeeskperformingksimilarkjobskf
orktheksamekorganization
externalkequityk-kCORRECTkANSWER-
whenkankorganization'skemployeeskbelievekthatktheirkpaykiskfairkwhenkcomparedktokwha
tkotherkemployerskpayktheirkemployeeskwhokperformksimilarkjobs
, comparablekworthk-kCORRECTkANSWER-
ifktwokjobskhavekequalkdifficultykrequirements,kthekpaykshouldkbektheksame,kregardlessk
ofkwhokfillskthem
wagekratekcompressionk-kCORRECTkANSWER-
startingksalarieskforknewkhireskexceedktheksalarieskpaidktokexperiencedkemployees
goldenkparachutek-kCORRECTkANSWER-
lucrativekbenefitskgivenktokexecutiveskinkthekeventkthekcompanykisktakenkover
Cost-of-livingkadjustmentsk-kCORRECTkANSWER-
paykincreasesktokaccountkforkakhigherkcostkofklivingkinkonekcountrykversuskanother
Housingkallowancek-kCORRECTkANSWER-
paymentsktoksubsidizekorkcoverkhousingkandkrelatedkcosts
hardshipkpremiumsk-kCORRECTkANSWER-
increasedksalarykforklivingkinkankareakwithkaklowerkqualitykofklife,klessksafety,ketc.
taxkequalizationkpaymentsk-kCORRECTkANSWER-
increasedksalaryktokmakekupkforkhigherktaxeskthatkreducektake-
homekpaykandkdecreasekemployee'skpurchasingkpower
inflationkadjustmentsk-kCORRECTkANSWER-
largerkand/orkmorekfrequentkraisesktokmaintainkemployee'skpurchasingkpowerkinkthekfac
ekofkinflation
FairkLaborkStandardskActkofk1938k-kCORRECTkANSWER-
akfederalklawkthatksetskstandardskforkminimumkwages,kovertimekpay,kandkequalkpaykfor
kmen kandkwomenkperformingktheksamekjobs
exemptkemployeesk-kCORRECTkANSWER-
employeeskwhokmeetkonekofkthekFLSAkexemptionktests,karekpaidkonkakfixedksalarykbasi
skandkareknotkentitledktokovertimekpay
non-exemptkemployeesk-kCORRECTkANSWER-
employeeskwhokdoknotkmeetkanykofkonekofkthekFLSAkexemptionktestskandkarekpaidkonk
ankhourlykbasiskandkcoveredkbykwagekandkhourklawskregardingkminimumkwage,koverti
mekpaykandkhourskworked
workers'kcompensationk-kCORRECTkANSWER-
aktypekofkinsurancekthatkreplaceskwageskandkmedicalkbenefitskforkemployeeskinjuredko
nkthekjobkinkexchangekforkrelinquishingkthekemployee'skrightktoksuekthekemployerkforkne
gligence