Human Resources Compensation & Benefits 2

Question 1

What is the purpose of a salary survey in compensation management?

Accepted Answer

To gather market data on competitive pay rates for benchmarking job positions

Answer

Salary surveys collect pay data from multiple employers to help organizations benchmark their compensation against the market.

Question 2

Under ERISA (Employee Retirement Income Security Act), what are plan fiduciaries required to do?

Accepted Answer

Act in the best interest of plan participants and beneficiaries

Answer

ERISA requires plan fiduciaries to act solely in the interest of participants and beneficiaries when managing retirement and benefit plans.

Question 3

What is a 'defined contribution' retirement plan?

Accepted Answer

A plan where employer and/or employee contribute fixed amounts and the retirement benefit depends on investment performance

Answer

In a defined contribution plan (like a 401(k)), contributions are fixed but the ultimate benefit depends on investment returns.

Question 4

What is 'pay equity' analysis?

Accepted Answer

Evaluating whether employees receive equal pay for equal work regardless of protected characteristics

Answer

Pay equity analysis identifies and corrects unjustified pay disparities between employees in similar roles based on gender, race, or other protected characteristics.

Question 5

What does 'vesting' mean in the context of employer retirement contributions?

Accepted Answer

The period over which employees earn ownership of employer-contributed retirement funds

Answer

Vesting schedules determine when employees gain full ownership of employer contributions to their retirement account.

Human Resources Practice Test

Human Resources Practice Test

Human Resources Compensation & Benefits 2