Final test & Certificate

Choose the best answer for each question.

To pass: at least 8 of 10 correct.

1. Question 1. What does Total Rewards include?

   AOnly base pay and bonusBBase pay, variable pay, benefits, and growth & recognitionCOnly what's written in the employment contract

2. Question 2. What are the three goals every reward system must balance?

   AInternal equity, external competitiveness, ability to payBHigh pay, big bonuses, good benefitsCFast hiring, long retention, low cost

3. Question 3. What does job evaluation measure?

   AThe relative value of the ROLE to the organisationBThe ability and performance of the person in the roleCThe market rate for that role

4. Question 4. The midpoint of a pay grade represents pay for whom?

   AA fully competent performerBSomeone brand new to the roleCThe very best performer in the grade

5. Question 5. An employee earns 24M and the grade midpoint is 20M. What is the compa-ratio?

   A1.20B0.83C1.04

6. Question 6. Why should pay grades overlap?

   ASo strong long-tenured specialists don't have to be promoted just to earn moreBTo save on the payroll budgetCTo reduce the number of grades to manage

7. Question 7. Which figure should you use when reading a salary survey?

   AThe median (P50)BThe averageCThe highest figure in the report

8. Question 8. Which two axes does a merit matrix combine?

   APerformance and compa-ratioBTenure and job titleCDepartment and location

9. Question 9. New hires paid nearly the same as long-tenured staff in the same role is called what?

   APay compressionBRed circleCInternal equity

10. Question 10. What's the right principle for transparency in pay communication?

    ABe transparent about principles and mechanics, without necessarily publishing individual salariesBPublish every employee's salary company-wideCDisclose nothing about how pay is calculated