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Regulatory Environments for Compensation Programs Questions and Answers

Question 1

What best describes the most effective tactic for getting stakeholders’ attention and buy-in?

Options:

A.

Ask them to review or provide feedback, especially on something you have done for them

B.

Talk to the individuals they report to in advance and gain their support so the stakeholders realize upper management already supports your position

C.

Schedule a meeting of all stakeholders and make a strong case that overcomes all of their objections

D.

Explain in precise terms to each stakeholder how your position is the most realistic approach to the issue or concern

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Question 2

Why are lump-sum increases generally used?

Options:

A.

To control annual fixed costs from base pay adjustments

B.

To elevate employees who are below the midpoint in the range

C.

To reward employees under short-term incentive plans

D.

To make up for benefits not provided by the organization   

Question 3

The Delta Company has experienced increased turnover in the past two years. Data from exit interviews indicate that most of those leaving did so for better opportunities and higher compensation. If Delta pays at the highest percentile of the market for their peer group, what data analysis should they do?

Options:

A.

Additional quantitative analysis to determine whether pay rates are truly competitive or existing data are unreliable

B.

Qualitative data collection to talk to key stakeholders and employees and determine whether the exit interviews accurately reflect their concerns

C.

Qualitative data collection in the form of an employee survey with questions about employee satisfaction with pay levels

D.

No additional data analysis is needed. Delta should increase pay rates based on the existing data to decrease turnover.