Question 1

For which type of employees should the lowest (first) quartile be used in a merit pay system with pay ranges divided into quartiles?

ARed-circled employees

BEmployees new to the role

CHigh-performing employees with five years in the job

DFully meets standards employees with five to seven years of experience

Answer : B

Question 2

An employee whose pay is at 75% range penetration is most likely to be in which of the following circumstances?

ANew to the role or job

BNot meeting performance standards

CMeeting performance standards

DExceeding performance standards

Answer : D

Question 3

What is a disadvantage of delivering a merit increase as a percent of base pay?

AEmployees with the same performance receive different monetary increases.

BEmployees with the same performance receive the same monetary increase.

CEmployees who are lower in the range receive larger monetary increases.

Answer : A

Question 4

It has been noted that an employee learns rapidly during the first few years on the job, after which time the rate of learning begins to slow. How can organizations address this in their pay programs?

ARe-evaluate the job itself more frequently.

BProvide less frequent increases to newer employees.

CProvide larger increases as a percentage of base pay to newer employees.

DProvide fixed dollar amount increases to all employees in the salary range.

Answer : C

Question 5

After revising or enhancing total rewards programs, what should the TR practitioner do to ensure business alignment?

ARevisit the TR program design and administration

BRevisit the total rewards strategy

CRevisit the human resources strategy

DRevisit the corporate vision and mission