Total Rewards Flashcards
7 cards from real PHR 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 flashcards as text
Under the FLSA, which test is NOT one of the standard exemption tests for the executive exemption?
Answer: Tenure test
The executive exemption requires meeting the salary basis, salary level, and duties tests, but there is no tenure test.
A company pays employees a flat amount per geographic area regardless of role. This best describes which pay strategy component?
Answer: Geographic differential
A geographic differential adjusts pay based on the cost of labor or living in a specific location.
Which type of benefit is mandated by federal law in the United States?
Answer: Social Security contributions
Social Security (and Medicare) contributions are legally mandated, while the others are voluntary employer-provided benefits.
An employee earns more than the maximum of their pay range due to a prior salary. What is this situation called?
Answer: Red circle rate
A red circle rate occurs when an employee's pay exceeds the maximum of the assigned range.
What does a compa-ratio of 0.85 indicate about an employee's pay?
Answer: Pay is 85% of the range midpoint
A compa-ratio of 0.85 means the employee is paid 85% of the range midpoint.
Which equity vehicle gives employees the right to buy company stock at a set price in the future?
Answer: Stock options
Stock options grant the right to purchase shares at a predetermined exercise price.
What is the primary purpose of a salary survey in total rewards?
Answer: To benchmark external market competitiveness
Salary surveys help organizations benchmark their pay against the external labor market.