Total Rewards Test Questions & Answers
What type of organization would benefit most from broadbanding? Correct Ans-Large
organizations that want to consolidate multiple layers of management. Broadbanding (salary
bands) combines two or more salary grades to create larger ranges and gives people wide latitude
to move within their job without outgrowing the pay scale. Broadbanding is most effective for
large organizations that want to flatten their organizational structure and remove some of the
levels of management. Broadbanding is not appropriate for controlling salary costs, as the salary
ranges may become too broad and salary costs could escalate. Companies with relatively few
positions are better off with a more traditional pay structure.
To recruit talent for a new venture in a small developing country, organizational executives
suggest that HR use market pricing instead of job-content-based evaluation. What is a potential
pitfall in this compensation strategy? Correct Ans-Internal positions may not match with
market data. Market pricing is a process that companies use to determine the market rates for a
particular position. Substituting market pricing for job valuation can be problematic in this
situation. For example, some positions will not be matched with market data and some of the
market rates found will not match up well with expected internal relationships.
An organization is faced with the challenge of offering robust benefits to retain top talent while
staying within budget or cost constraints. Why is a benefit needs assessment a valuable
undertaking? Correct Ans-A benefits package can have a positive impact on attracting,
motivating, and retaining talent. Assessment data should allow the organization to refine benefit
offerings so the package is affordable yet valued by employees.
What makes benefit programs most effective in attracting, motivating, and retaining employees?
Correct Ans-If they are part of a complete compensation strategy targeted for the employer's
workforce. Strategic planning can provide for controlled budgets over a period of years and
What type of organization would benefit most from broadbanding? Correct Ans-Large
organizations that want to consolidate multiple layers of management. Broadbanding (salary
bands) combines two or more salary grades to create larger ranges and gives people wide latitude
to move within their job without outgrowing the pay scale. Broadbanding is most effective for
large organizations that want to flatten their organizational structure and remove some of the
levels of management. Broadbanding is not appropriate for controlling salary costs, as the salary
ranges may become too broad and salary costs could escalate. Companies with relatively few
positions are better off with a more traditional pay structure.
To recruit talent for a new venture in a small developing country, organizational executives
suggest that HR use market pricing instead of job-content-based evaluation. What is a potential
pitfall in this compensation strategy? Correct Ans-Internal positions may not match with
market data. Market pricing is a process that companies use to determine the market rates for a
particular position. Substituting market pricing for job valuation can be problematic in this
situation. For example, some positions will not be matched with market data and some of the
market rates found will not match up well with expected internal relationships.
An organization is faced with the challenge of offering robust benefits to retain top talent while
staying within budget or cost constraints. Why is a benefit needs assessment a valuable
undertaking? Correct Ans-A benefits package can have a positive impact on attracting,
motivating, and retaining talent. Assessment data should allow the organization to refine benefit
offerings so the package is affordable yet valued by employees.
What makes benefit programs most effective in attracting, motivating, and retaining employees?
Correct Ans-If they are part of a complete compensation strategy targeted for the employer's
workforce. Strategic planning can provide for controlled budgets over a period of years and
