CODESP Classification and Compensation Studies 5

Question 1

A pay compression problem exists when:

Accepted Answer

The pay difference between new hires and experienced employees narrows significantly

Answer

Pay compression occurs when market-driven starting salaries rise faster than incumbents' pay, eroding the differential between new and experienced employees.

Question 2

Which approach to market pricing uses regression analysis to establish a salary line that best fits the relationship between job evaluation points and market pay rates?

Accepted Answer

Policy line or pay line

Answer

A policy or pay line is plotted using regression analysis to show the relationship between internal job worth (points) and external market rates.

Question 3

Under the FLSA, which category of employee is NOT exempt from overtime pay requirements?

Accepted Answer

A non-supervisory office clerk earning $45,000 annually

Answer

Non-supervisory clerical workers generally do not meet the duties test for any FLSA white-collar exemption and are entitled to overtime.

Question 4

In a CODESP classification study, what does the concept of 'class specification' describe?

Accepted Answer

A document defining the characteristics, duties, and qualifications common to a class of positions

Answer

A class specification establishes the general definition, distinguishing characteristics, and minimum qualifications for all positions allocated to a job class.

Question 5

What does a compa-ratio of 0.85 indicate about an employee's pay relative to the midpoint of their pay grade?

Accepted Answer

The employee is paid 15% below the midpoint

Answer

A compa-ratio below 1.0 means the employee's salary is below the pay grade midpoint; 0.85 means they earn 85% of the midpoint (15% below).

CODESP - Cooperative Organization for the Development of Employee Selection Procedures Practice Test

CODESP - Cooperative Organization for the Development of Employee Selection Procedures Practice Test

CODESP Classification and Compensation Studies 5