HRCI Compensation and Benefits 2

Question 1

Under COBRA, how long may a terminated employee typically continue group health coverage?

Accepted Answer

Up to 18 months

Answer

COBRA generally allows qualified beneficiaries to continue group health coverage for up to 18 months following termination or reduction in hours.

Question 2

What is 'job evaluation' in the context of compensation?

Accepted Answer

A systematic process of determining the relative worth of jobs within an organization

Answer

Job evaluation uses methods such as point factor, job ranking, or job classification to establish internal pay hierarchies based on job content and requirements.

Question 3

Which term describes compensation paid to employees for work not performed, such as holidays and vacation?

Accepted Answer

Paid time off (PTO) / paid leave

Answer

Paid time off for vacations, holidays, sick leave, and personal days is indirect compensation representing pay for time not worked.

Question 4

What is the purpose of a 'compa-ratio' in compensation management?

Accepted Answer

To compare an employee's actual salary to the midpoint of their pay range

Answer

Compa-ratio (actual salary ÷ range midpoint × 100) indicates whether an employee is paid below (< 100%), at (= 100%), or above (> 100%) the market midpoint.

Question 5

What distinguishes a 'merit increase' from a 'cost-of-living adjustment (COLA)'?

Accepted Answer

Merit increases are tied to individual performance; COLAs apply uniformly to offset inflation

Answer

Merit increases reward individual performance differentially, while COLAs are flat adjustments given to all employees to preserve purchasing power against inflation.

HRCI - Human Resource Certification Institute Practice Test

HRCI - Human Resource Certification Institute Practice Test

HRCI Compensation and Benefits 2