Compensation & Benefits Exam Question
& Answers ( Latest 2025 )
Total Rewards - CORRECT ANSWERS ✔✔an exchange of payment
from an employer for the services provided by its employees.
Monetary Compensation - CORRECT ANSWERS ✔✔Includes any
costs the organization incurs for the benefit of employees, such as all
forms of cash compensation, 401(k) matching, medical care premiums,
pension plans, and paid time off. Other kinds of rewards include
benefits that support the organization's culture such as stock options,
Employee Stock Ownership Programs (ESOPs), and incentive plans.
Intrinsic Reward - CORRECT ANSWERS ✔✔A reward that
encourages individual employee self esteem, such as satisfaction from
challenging and exciting assignments.
Extrinsic Reward - CORRECT ANSWERS ✔✔A reward in which
esteem is achieved from others, such as fulfillment from working with a
talented team of peers.
Nonmonetary Rewards - CORRECT ANSWERS ✔✔Include
nontraditional work-life balance benefits such as telecommuting, on-
site childcare, and flex time.
Direct Compensation - CORRECT ANSWERS ✔✔Includes payments
made to employees that are associated with wages and salaries. This
includes pay, variable compensation, and pay for performance.
, Compensation & Benefits Exam Question
& Answers ( Latest 2025 )
Indirect Compensation - CORRECT ANSWERS ✔✔Consists of any
employee payments not associated with wages and salaries. This
includes fringe benefits such as vacation, sick, and holiday pay;
insurance premiums paid on behalf of employees; leaves of absence;
401(k) or other pension plans, and government-mandated benefits
such as Social Security or FMLA, or other benefits.
Total Rewards Philosophy - CORRECT ANSWERS ✔✔A high-level
mission statement used to guide the development and implementation
of compensation and benefit programs that attract, motivate, and
retain employees.
What is the challenge in developing a compensation philosophy? -
CORRECT ANSWERS ✔✔Balancing the diverse conditions faced by
the organization as a whole in a way that is consistent with the
organizational culture.
Internal Conditions (affecting compensation philosophy) - CORRECT
ANSWERS ✔✔Affect an organization's willingness and ability to
pay. Examples include financial constraints, or poor business results
prevent an organization from following through with a generous bonus
program. Competing priorities in an organization impact its ability to
introduce new rewards programs and maintain existing ones.
Organizational culture combines with the types of products and
services offered by the organization. Organizational Structure, for
& Answers ( Latest 2025 )
Total Rewards - CORRECT ANSWERS ✔✔an exchange of payment
from an employer for the services provided by its employees.
Monetary Compensation - CORRECT ANSWERS ✔✔Includes any
costs the organization incurs for the benefit of employees, such as all
forms of cash compensation, 401(k) matching, medical care premiums,
pension plans, and paid time off. Other kinds of rewards include
benefits that support the organization's culture such as stock options,
Employee Stock Ownership Programs (ESOPs), and incentive plans.
Intrinsic Reward - CORRECT ANSWERS ✔✔A reward that
encourages individual employee self esteem, such as satisfaction from
challenging and exciting assignments.
Extrinsic Reward - CORRECT ANSWERS ✔✔A reward in which
esteem is achieved from others, such as fulfillment from working with a
talented team of peers.
Nonmonetary Rewards - CORRECT ANSWERS ✔✔Include
nontraditional work-life balance benefits such as telecommuting, on-
site childcare, and flex time.
Direct Compensation - CORRECT ANSWERS ✔✔Includes payments
made to employees that are associated with wages and salaries. This
includes pay, variable compensation, and pay for performance.
, Compensation & Benefits Exam Question
& Answers ( Latest 2025 )
Indirect Compensation - CORRECT ANSWERS ✔✔Consists of any
employee payments not associated with wages and salaries. This
includes fringe benefits such as vacation, sick, and holiday pay;
insurance premiums paid on behalf of employees; leaves of absence;
401(k) or other pension plans, and government-mandated benefits
such as Social Security or FMLA, or other benefits.
Total Rewards Philosophy - CORRECT ANSWERS ✔✔A high-level
mission statement used to guide the development and implementation
of compensation and benefit programs that attract, motivate, and
retain employees.
What is the challenge in developing a compensation philosophy? -
CORRECT ANSWERS ✔✔Balancing the diverse conditions faced by
the organization as a whole in a way that is consistent with the
organizational culture.
Internal Conditions (affecting compensation philosophy) - CORRECT
ANSWERS ✔✔Affect an organization's willingness and ability to
pay. Examples include financial constraints, or poor business results
prevent an organization from following through with a generous bonus
program. Competing priorities in an organization impact its ability to
introduce new rewards programs and maintain existing ones.
Organizational culture combines with the types of products and
services offered by the organization. Organizational Structure, for
