After 75 years in business, ABC Corp. has decided it is time to overhaul its compensation system. What advice would you offer its HR manager?

Question

Quizplus · Accepted Answer

Making the compensation system more flexible and reducing the number of pay levels will provide employees with more opportunities for growth and development, as well as incentivize high performance. This will also make it easier for managers to make fair and consistent compensation decisions.

Answer: C 
 While benefits are an important part of the overall compensation package, they should not be the sole focus. Employees also need competitive salaries and wages to meet their financial needs and feel valued by the company.

Answer: B and D 
 Paying everyone in the same pay grade regardless of seniority and making pay a function of the amount of education the employee has may seem like a fair approach, but it may not adequately reward high-performing employees or those with more experience on the job. It's important to consider performance and experience when determining compensation.

After 75 Years in Business, ABC Corp