CPHR Total Rewards and Compensation 2

Question 1

Which pay structure design uses broad salary bands that overlap significantly, giving managers more flexibility in rewarding performance?

Accepted Answer

Broadbanding

Answer

Step-rate progression

Answer

Flat-rate pay

Answer

Pay grades

Question 2

Under the Fair Labor Standards Act (FLSA), which of the following employees is most likely classified as exempt from overtime requirements?

Accepted Answer

A salaried marketing director earning $75,000/year

Answer

A cashier earning $18/hour

Answer

A part-time warehouse associate

Answer

A non-supervisory data entry clerk earning $30,000/year

Question 3

A company offers employees the option to redirect a portion of their salary to pay for dependent care expenses before taxes are applied. This is an example of:

Accepted Answer

A flexible spending account (FSA)

Answer

A health reimbursement arrangement (HRA)

Answer

A qualified transportation benefit

Answer

A supplemental executive retirement plan (SERP)

Question 4

When designing a long-term incentive plan for senior executives, which vehicle aligns executive interests most directly with shareholder value creation?

Accepted Answer

Restricted stock units (RSUs)

Answer

Spot bonuses

Answer

Sign-on bonuses

Answer

Shift differentials

Question 5

Which compensation philosophy positions an organization's pay rates at the 75th percentile of the market?

Accepted Answer

Lead strategy

Answer

Lag strategy

Answer

Match strategy

Answer

Hybrid strategy

Question 6

An employee receives additional pay for working the 11 PM–7 AM shift. This is classified as:

Accepted Answer

Shift differential

Answer

Hazard pay

Answer

On-call pay

Answer

Callback pay

Question 7

The compa-ratio is calculated as an employee's actual pay divided by:

Accepted Answer

The midpoint of the pay range

Answer

Their previous year's salary

Answer

The minimum of the pay range

Answer

The maximum of the pay range