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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. What is a primary objective of profit-sharing and performance-sharing variable pay plans?

A) To defer compensation expenses to future reporting periods
B) To achieve organizational cost savings through base pay reductions
C) To reward individual employees for some significant contribution
D) To increase employee identification with the organization's success

2. Until what age does the FLSA limit the number of hours of nonhazardous work? (...as long as the overtime pay provisions are met)

A) 14 years of age
B) 16 years of age
C) 18 years of age
D) 15 years of age

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?

A) Qualitative data collection in the form of an employee survey with questions about employee satisfaction with pay levels
B) Qualitative data collection to talk to key stakeholders and employees and determine whether the exit interviews accurately reflect their concerns
C) No additional data analysis is needed. Delta should increase pay rates based on the existing data to decrease turnover.
D) Additional quantitative analysis to determine whether pay rates are truly competitive or existing data are unreliable

4. What is one reason that it is important to perform a periodic audit of processes and results?

A) It is required in determining increase budgets
B) It builds in a process of continuous improvement
C) It is required by the Department of Labor
D) It determines what information and data sources will be used in the audit

5. Which one of the following practices will help to ensure proper documentation for compliance with legislation?

A) Allow employees easy and unlimited access to documentation
B) Use one survey source instead of several
C) Be consistent in procedures and completeness

Solutions: