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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. The "return" represented by the Total Shareholder Return (TSR) metric is the increase in what?

A) Shares
B) Earnings
C) Market capitalization
D) Increased market value and reinvested dividends paid

2. Which of the following best describes a factor that has influenced the growth and change in benefits?

A) There is a decreasing number of females in the workforce.
B) Employees have longer career expectations.
C) Decreasing costs are causing growth in the numbers of benefits employers offer.
D) Employees are expressing a greater desire for choice in their benefits.

3. Regarding compensation communications with executives, where do they tend to need the greatest level of understanding?

A) In the methods and processes used to make pay decisions
B) In the details of their individual compensation packages
C) In the overall program objectives
D) In the differences in pay levels for the different levels of the organization

4. Why are lump-sum increases generally used?

A) To reward employees under short-term incentive plans
B) To make up for benefits not provided by the organization
C) To elevate employees who are below the midpoint in the range
D) To control annual fixed costs from base pay adjustments

5. Step-rate increase programs provide employees the opportunity to receive two regular pay increases at which points?

A) At established dates and then every six months thereafter
B) On January 1 and July 1 of each year
C) At the anniversary date and at the annual merit increase date
D) Once when they move a step, and again when the step value changes

Solutions: