Question 1

What are exempt and non-exempt jobs? How are exempt and non-exempt jobs identified in the organization? What are independent contractors and why is it important for the organization to identify who is a contractor and who is an employee?

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Question 2

Collette received a $2,500 lump-sum increase for her performance last year.This increased her base pay by $2,500.

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Question 3

Josephine has been a high performing employee for Clockman Publications for many years.She has a compa-ratio over 115.Clockman Publications uses the pay adjustment matrix method for calculating raises.Clockman has had a highly profitable year.Josephine should expect a significant pay increase this year..

Accepted Answer

A compa-ratio over 100% indicates that Josephine is already being paid above the market rate for her position. In organizations using a pay adjustment matrix, raises are often more modest for employees with high compa-ratios, even in profitable years, to manage payroll budgets and ensure internal pay equity.

Question 4

Would you recommend that an employer require that all salary information be kept confidential? Why or why not?

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Question 5

What are the advantages and disadvantages of using market pricing to set compensation in organizations?

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Question 6

Pay compression is the phenomenon of employees with less seniority making a higher salary than high-performing employees with greater seniority.

Accepted Answer

Pay compression occurs when lower-level employees are compensated at the same level or higher than their more senior colleagues due to factors such as market pressures, salary freezes, or cost-cutting measures. This can lead to a decrease in employee morale and motivation, as well as increased turnover among high-performing employees who feel undervalued and underpaid.

Question 7

What are the two major compensation philosophies and how to they affect employee attitudes and behavior?

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Question 8

What is meant by equity? Is equity an important consideration in compensation?

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Quiz 11: Total Rewards and Compensation