PHR Total Rewards and Compensation Questions and Answers

Question 1

A non-exempt, hourly employee works 45 hours in a single workweek at a base rate of $20 per hour.
During that week, they also earn a $100 non-discretionary performance bonus.
According to the Fair Labor Standards Act (FLSA), what is the employee's approximate total compensation for that week?

Accepted Answer

$1,055.55

Answer

$1,050.00

Answer

$1,000.00

Answer

$950.00

Question 2

A compensation analyst is reviewing employee pay data and calculates a compa-ratio for each individual. What is the primary purpose of this metric?

Accepted Answer

To compare an employee's salary to the midpoint of their assigned salary range.

Answer

To determine the total cost of benefits as a percentage of overall compensation.

Answer

To ensure the company's pay structure is competitive with the external market.

Answer

To calculate the average salary increase awarded during the annual merit cycle.

Question 3

An organization is designing its total rewards package. Which of the following is considered a discretionary benefit and is NOT legally mandated for most private employers in the United States?

Accepted Answer

Paid Time Off (PTO) for vacations and holidays.

Answer

Contributions to Social Security and Medicare.

Answer

Insurance for workers' compensation.

Answer

Unpaid, job-protected leave under FMLA.

Question 4

A growing company wants to establish a formal salary structure by determining the internal value of each job. The HR manager plans to use a system that assesses jobs based on specific compensable factors like skill, responsibility, and effort. Which job evaluation method is MOST appropriate?

Accepted Answer

Point-factor method

Answer

Market pricing

Answer

Job ranking

Answer

Job classification

Question 5

Which of the following BEST describes a key difference between a gainsharing plan and a profit-sharing plan?

Accepted Answer

Gainsharing payouts are based on operational improvements in a group or department, while profit-sharing payouts are based on overall company profitability.

Answer

Gainsharing plans provide employees with company stock, whereas profit-sharing plans provide cash bonuses.

Answer

Gainsharing is a legally required program for manufacturing companies, while profit-sharing is always discretionary.

Answer

Gainsharing plans reward individual performance, while profit-sharing plans reward only team performance.

Question 6

A tech company provides competitive base salaries but is struggling to retain its top engineers, who cite a lack of long-term financial stake in the company's success. Which strategy should HR recommend to BEST address this specific retention issue?

Accepted Answer

Introducing a long-term incentive plan with stock options or RSUs that vest over several years.

Answer

Increasing the annual merit budget for all engineers.

Answer

Implementing a quarterly cash bonus plan for meeting project deadlines.

Answer

Improving the company's health insurance and wellness benefits.

A non-exempt, hourly employee works 45 hours in a single workweek at a base rate of $20 per hour.During that week, they also earn a $100 non-discretionary performance bonus.According to the Fair Labor Standards Act (FLSA), what is the employee's approximate total compensation for that week?

A non-exempt, hourly employee works 45 hours in a single workweek at a base rate of $20 per hour.
During that week, they also earn a $100 non-discretionary performance bonus.
According to the Fair Labor Standards Act (FLSA), what is the employee's approximate total compensation for that week?