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CCP 6 - Base Pay Administration and Pay
for Performance Questions and Correct
Answers/ Latest Update / Already Graded
Elements of Compensation
Ans: fixed and variable pay
Variable Pay
Ans: compensation that is contingent on discretion,
performance or results achieved
Total Rewards Design Process
Ans: Corporate vision/mission
Business strategy
HR strategy
TR strategy
Program design and implementation
Program evaluation - revise or enhance
Compensation Program Objectives
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Ans: internally equitable, externally competitive, affordability,
easily understood, legally defensible, efficient, needs of the
future
Attract, Motivate, Engage and Retain employees
Base Pay
Ans: is the fixed comp paid to an employee for performing
specific job responsibilities
Salary
Ans: comp paid on a weekly, biweekly or monthly basis rather
than by the house. Generally these positions are not eligible for
overtime pay.
Hourly Rate
Ans: comp paid by the hour for a job being performed.
Generally can be paid for overtime.
Piece Rate
Ans: payment is based on an individual's rate of production.
All rights reserved © 2025/ 2026 |
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Base Pay Structure Design
Ans: Job Analysis
Job Documentation
Job Evaluation
Job Worth Hierarchy
Job Analysis
Ans: provides key information about the nature and level of
work performed.
Job Documentation
Ans: Includes written information about the job content or the
functions of the job and associated KSAs.
Job Evaluation
Ans: collects data needed to create a job worth hierarchy using
market data or job content approach.
Job Worth Hierarchy
Ans: Illustrates where each job fits relative to other jobs.
Perceived value of jobs in relationship to each other
All rights reserved © 2025/ 2026 |
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Established foundation for the base pay system
Important opportunity to validate the assumptions with internal
stakeholders
Base Pay Structure
Ans: after a job worth hierarchy is built, becomes the
framework for pay decisions.
Job Evaluation Methods
Ans: Market Data Approach
Job Content Approach
Market Data Approach
Ans: Job descriptions to match survey data
Jobs arranged into a hierarchy
Jobs with no market data are slotted
--Popular when the market is tight and when current wage rates
are required in order to attract talent
Job Content Approach
Ans: Relative internal value
All rights reserved © 2025/ 2026 |
CCP 6 - Base Pay Administration and Pay
for Performance Questions and Correct
Answers/ Latest Update / Already Graded
Elements of Compensation
Ans: fixed and variable pay
Variable Pay
Ans: compensation that is contingent on discretion,
performance or results achieved
Total Rewards Design Process
Ans: Corporate vision/mission
Business strategy
HR strategy
TR strategy
Program design and implementation
Program evaluation - revise or enhance
Compensation Program Objectives
All rights reserved © 2025/ 2026 |
, Page |2
Ans: internally equitable, externally competitive, affordability,
easily understood, legally defensible, efficient, needs of the
future
Attract, Motivate, Engage and Retain employees
Base Pay
Ans: is the fixed comp paid to an employee for performing
specific job responsibilities
Salary
Ans: comp paid on a weekly, biweekly or monthly basis rather
than by the house. Generally these positions are not eligible for
overtime pay.
Hourly Rate
Ans: comp paid by the hour for a job being performed.
Generally can be paid for overtime.
Piece Rate
Ans: payment is based on an individual's rate of production.
All rights reserved © 2025/ 2026 |
, Page |3
Base Pay Structure Design
Ans: Job Analysis
Job Documentation
Job Evaluation
Job Worth Hierarchy
Job Analysis
Ans: provides key information about the nature and level of
work performed.
Job Documentation
Ans: Includes written information about the job content or the
functions of the job and associated KSAs.
Job Evaluation
Ans: collects data needed to create a job worth hierarchy using
market data or job content approach.
Job Worth Hierarchy
Ans: Illustrates where each job fits relative to other jobs.
Perceived value of jobs in relationship to each other
All rights reserved © 2025/ 2026 |
, Page |4
Established foundation for the base pay system
Important opportunity to validate the assumptions with internal
stakeholders
Base Pay Structure
Ans: after a job worth hierarchy is built, becomes the
framework for pay decisions.
Job Evaluation Methods
Ans: Market Data Approach
Job Content Approach
Market Data Approach
Ans: Job descriptions to match survey data
Jobs arranged into a hierarchy
Jobs with no market data are slotted
--Popular when the market is tight and when current wage rates
are required in order to attract talent
Job Content Approach
Ans: Relative internal value
All rights reserved © 2025/ 2026 |
