SHRM Total Rewards & Compensation 2

Question 1

Which pay structure element defines the minimum and maximum salary for a given job grade?

Accepted Answer

Pay range

Answer

A pay range establishes the minimum, midpoint, and maximum compensation levels for a specific job grade.

Question 2

An employee's salary is $52,000 and the midpoint of their pay grade is $65,000. What is their compa-ratio?

Accepted Answer

0.80

Answer

Compa-ratio = actual salary / midpoint, so $52,000 / $65,000 = 0.80 (80%).

Question 3

Which of the following best describes a broadbanding pay structure?

Accepted Answer

Few wide pay grades consolidating multiple traditional grades

Answer

Broadbanding collapses many narrow pay grades into fewer, wider bands to allow more flexibility in pay decisions.

Question 4

Under the Fair Labor Standards Act, which type of employee must receive overtime pay for hours worked over 40 in a workweek?

Accepted Answer

Non-exempt employees

Answer

Non-exempt employees are entitled to overtime pay at 1.5 times their regular rate for hours over 40 per workweek under FLSA.

Question 5

A company awards bonuses based on individual performance ratings at year-end. This is an example of which incentive type?

Accepted Answer

Merit bonus

Answer

A merit bonus is a lump-sum payment tied to an individual's performance evaluation, separate from base pay increases.

SHRM - Society for Human Resource Management Practice Test