Total Rewards and Compensation Flashcards
7 cards from real CPHR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Total Rewards and Compensation flashcards as text
Which of the following describes a non-qualified deferred compensation (NQDC) plan?
Answer: An arrangement where executives defer income to a future date without ERISA protections
NQDC plans allow executives to defer compensation to a later period but are unsecured promises to pay and do not carry the same ERISA protections as qualified plans.
A company implements a gain-sharing program where employees receive bonuses tied to measurable reductions in production costs. Which specific gain-sharing plan is this most consistent with?
Answer: Improshare Plan
Improshare (Improved Productivity through Sharing) bases payouts on measurable improvements in labor productivity and production efficiency.
When benchmarking jobs to market data, which factor is MOST critical to ensuring valid salary comparisons?
Answer: Matching job content and scope, not just job title
Accurate market pricing requires matching the actual duties, responsibilities, and scope of a job—not just the title—to comparable positions in survey data.
Which tax-advantaged account allows employees to save for retirement and also permits penalty-free withdrawals for qualified medical expenses after age 65?
Answer: Health Savings Account (HSA)
An HSA accumulates tax-free and funds roll over indefinitely; after age 65, withdrawals for any purpose are penalty-free (though non-medical ones are taxable).
An organization's pay equity audit reveals that women in comparable roles earn 8% less than men after controlling for experience and tenure. The BEST next step is to:
Answer: Conduct a regression analysis to identify root causes before adjusting pay
A thorough regression analysis helps isolate legitimate pay drivers from discriminatory factors before remediation decisions are made.
Which method of job evaluation ranks positions by comparing whole jobs to each other rather than analyzing compensable factors?
Answer: Whole-job ranking method
The whole-job ranking method orders jobs from highest to lowest based on overall perceived value without decomposing them into specific compensable factors.
A retroactive pay increase given to employees whose wages were below a newly established minimum pay range is called:
Answer: A green-circle rate correction
Green-circle rates occur when an employee's pay falls below the minimum of their pay range, and corrective increases are made to bring pay in line.