BASE PAY ADMINISTRATION AND PAY FOR PERFORMANCE FINAL
PAPER 2025/2026 QUESTIONS WITH ANSWERS RATED A+
✔✔Job evaluation - ✔✔Collects data needed to create a job worth hierchy using market
data or job content approach
✔✔Job worth hierchy - ✔✔Illustrates where each job fits relative to other jobs
✔✔Base pay - last step - ✔✔After it us built using ja, JD, he, jwh, then this is your
framework for pay decisions
✔✔Job evaluation methods (2) - ✔✔Systematic method and process for determine and
comparing the relative value of one job to others
1) market data approach
2) job content
✔✔Market data approach - ✔✔-job description used to match survey data
-benchmark jobs are arranged in a hierchy based on analysis in the market
- benchmark jobs also help with pay comparing
✔✔Job content approach - ✔✔Relative internal value is determined between jobs
based on the nature and level of work
· some jobs are priced at anchor points
✔✔Job worth hierarchy- what it is - ✔✔Perceived value of jobs in relationship to each
other
✔✔Jbw-why it is important - ✔✔Determine which jobs should be grouped
Forms the foundation of the base pay system
✔✔Jwh- why is it used? - ✔✔To determine Internal equity among both positions and
groups of positions
✔✔JWH- 2 based - ✔✔Market based
Job content based
✔✔Designing base pay structure - ✔✔management tool that reflect the collection and
organization of internal & external compensation data to support job values. It also
consists of a series of pay ranges that represent jobs of similar internal & external worth
✔✔Base Pay Structure - objectives - ✔✔*Create alignment between work and rewards
*help to achieve organizational objectives - effective compensation tools for supporting
the organization
*reflect
, ✔✔Market-based approach to pay structure - ✔✔External Market pricing or
competitiveness
takes priority
Characteristics of market pricing & slotting
1) simple to administer
2) easy to understand
3) no job evaluation points
4) responsive to market changes
✔✔Point factor approach to pay structure - ✔✔continuum approach
*no job grades
*internal equity is the priority
pay structure approach
*develop job grades
*based on job evaluation or internal value
✔✔Point Factor Approach to pay structure Development - ✔✔Integrating market data
into a point factor - *Values both internal and external relationships
*uses formal job evaluation system and market data - allows the company to emphasis
the formal practice
✔✔Pay structure design considerations - ✔✔* strategic issues
*competitive practices
*the organizations job and workplace design approach
the organization's administrative policies
the funds available for compensation plan
*the value the program adds
✔✔Is the process of building a new one different from updating the existing one? -
✔✔*will this compensation structure enable our organization to achieve its goals
*can we attract, retain, engage and motivate the right employees?
*is our organization's compensation strategy to value internal job worth, external market
data or both?
✔✔Pay structure design - ✔✔* base pay policy line
*number of pay structures
*number of pay grades or bands (ranges, spreads, midpoint differentials, overlap)
✔✔Components of base pay structure - ✔✔add a picture
✔✔Developing a base pay policy line - ✔✔plot internal value against current salaries
plot internal value against market data
compute the trend line
reconcile with compensation strategy
PAPER 2025/2026 QUESTIONS WITH ANSWERS RATED A+
✔✔Job evaluation - ✔✔Collects data needed to create a job worth hierchy using market
data or job content approach
✔✔Job worth hierchy - ✔✔Illustrates where each job fits relative to other jobs
✔✔Base pay - last step - ✔✔After it us built using ja, JD, he, jwh, then this is your
framework for pay decisions
✔✔Job evaluation methods (2) - ✔✔Systematic method and process for determine and
comparing the relative value of one job to others
1) market data approach
2) job content
✔✔Market data approach - ✔✔-job description used to match survey data
-benchmark jobs are arranged in a hierchy based on analysis in the market
- benchmark jobs also help with pay comparing
✔✔Job content approach - ✔✔Relative internal value is determined between jobs
based on the nature and level of work
· some jobs are priced at anchor points
✔✔Job worth hierarchy- what it is - ✔✔Perceived value of jobs in relationship to each
other
✔✔Jbw-why it is important - ✔✔Determine which jobs should be grouped
Forms the foundation of the base pay system
✔✔Jwh- why is it used? - ✔✔To determine Internal equity among both positions and
groups of positions
✔✔JWH- 2 based - ✔✔Market based
Job content based
✔✔Designing base pay structure - ✔✔management tool that reflect the collection and
organization of internal & external compensation data to support job values. It also
consists of a series of pay ranges that represent jobs of similar internal & external worth
✔✔Base Pay Structure - objectives - ✔✔*Create alignment between work and rewards
*help to achieve organizational objectives - effective compensation tools for supporting
the organization
*reflect
, ✔✔Market-based approach to pay structure - ✔✔External Market pricing or
competitiveness
takes priority
Characteristics of market pricing & slotting
1) simple to administer
2) easy to understand
3) no job evaluation points
4) responsive to market changes
✔✔Point factor approach to pay structure - ✔✔continuum approach
*no job grades
*internal equity is the priority
pay structure approach
*develop job grades
*based on job evaluation or internal value
✔✔Point Factor Approach to pay structure Development - ✔✔Integrating market data
into a point factor - *Values both internal and external relationships
*uses formal job evaluation system and market data - allows the company to emphasis
the formal practice
✔✔Pay structure design considerations - ✔✔* strategic issues
*competitive practices
*the organizations job and workplace design approach
the organization's administrative policies
the funds available for compensation plan
*the value the program adds
✔✔Is the process of building a new one different from updating the existing one? -
✔✔*will this compensation structure enable our organization to achieve its goals
*can we attract, retain, engage and motivate the right employees?
*is our organization's compensation strategy to value internal job worth, external market
data or both?
✔✔Pay structure design - ✔✔* base pay policy line
*number of pay structures
*number of pay grades or bands (ranges, spreads, midpoint differentials, overlap)
✔✔Components of base pay structure - ✔✔add a picture
✔✔Developing a base pay policy line - ✔✔plot internal value against current salaries
plot internal value against market data
compute the trend line
reconcile with compensation strategy
