SHRM-CP Total Rewards & Compensation

Question 1

Which compensation philosophy positions an organization's pay rates at or above the 50th percentile of the market?

Accepted Answer

Lead the market strategy

Answer

Match the market strategy

Answer

Lag the market strategy

Answer

Broadband strategy

Question 2

A compa-ratio of 1.10 for an employee means:

Accepted Answer

The employee is paid 10% above the midpoint of their pay grade

Answer

The employee is paid at exactly the midpoint

Answer

The employee is paid 10% below the midpoint

Answer

The employee's pay exceeds the maximum of the range

Question 3

Which pay structure characteristic allows employees to progress through a wide salary band with few distinct pay grades?

Accepted Answer

Broadbanding

Answer

Step progression

Answer

Pay for performance

Answer

Cost of living adjustment (COLA)

Question 4

The Equal Pay Act of 1963 requires equal pay for equal work. Which factors LEGALLY justify pay differences under this law?

Accepted Answer

Seniority, merit, quantity or quality of production, and any factor other than sex

Answer

Race, national origin, religion, and disability status

Answer

Marital status, age, and education level

Answer

Geography, industry, and company size alone

Question 5

A defined benefit pension plan provides retirement income based on:

Accepted Answer

A formula using years of service and final average salary

Answer

The balance accumulated in the employee's individual account

Answer

Employee and employer contributions plus investment returns

Answer

The employee's age at retirement only

Question 6

Under the Fair Labor Standards Act (FLSA), which employee classification is exempt from overtime pay requirements?

Accepted Answer

Employees who meet the salary threshold and duties test for executive, administrative, or professional roles

Answer

All salaried employees regardless of duties

Answer

All employees earning above $50,000 annually

Answer

Part-time employees working fewer than 30 hours per week