Compensation Review

1
Compensation Review

1. The only key strategy that is important in
   developing a compensation system is motivation.
2. The relative pay for different jobs in an
   organization is known as pay level.
3. The labor market that determines pay is related
   to the goods and service market.
4. Job evaluation determines the employees
   performance and whether or not they get a pay
   raise.

2
Compensation Review, p2

• 5. The Walsh Healey Act deals with equal
  employment opportunity in pay matters.
• 6. The DavisBacon Act of 1931 established the
  requirement for paying prevailing wages on public
  works projects such as WPA and CCC.
• 7. Prevailing wages are the average wage paid for
  a job in a certain geographic location.
• 8. The minimum wage is determined by the
  Department of Labor every two years.

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Compensation Review, p3

• 9. The FLSA established the standard for overtime
  pay beyond 40 hours per week.
• 10. The current federal minimum wage is 6.55 per
  hour.
• 11. The characteristics of a job that the
  organization values and chooses to pay for are
  called compensable factors.
• 12. Pay surveys are used to determine employee
  perceptions of the companys pay system.
• 13. The Federal government uses the GS system to
  pay its employees.

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Compensation Review, p4

• 14. The pay ranking system is based on a point
  manual.
• 15. A steep pay policy line usually indicates
  that the company is generous in its pay
  structure.
• 16. Pay grades indicate the clustering of job pay
  rates and evaluation points.
• 17. Pay ranges usually indicate the high and low
  parts of a pay grade.
• 18. Pay differentials are paid to compensate for
  undesirable working schedules and conditions.

5
Name that Benefit or the Most
Appropriate Benefit Category

• Old age benefit starting at age 62
• 26 weeks of eligibility initially
• Reduced fee contract for health care
• Nursing home coverage
• Specified level of retirement income
• 12 Weeks of unpaid leave
• Work-related injury or illness
• Child care
• 9. Take your dog to work day

6
Name that Benefit or the Most
Appropriate Benefit
Category, p2

• 10. Required medical care only from a very
  limited
• list of health care professionals
• 11. Vacations, holidays
• 12. Specific investment into a retirement plan
• 13. COBRA
• 14. Payment of relocation expenses
• 15. Both parties pay into a retirement plan
• 16. Part of the Social Security Act
• 17. 529 savings plan
• 18. ERISA
• 19. Helping employees with personal problems

7
Name that Benefit or the Most
Appropriate Benefit Category, p3
20. SS, UC, WC, FMLA, PPACA