Total Rewards & Compensation Flashcards

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

Answer: Pay range

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

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

Answer: 0.80

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

Which of the following best describes a broadbanding pay structure?

Answer: Few wide pay grades consolidating multiple traditional grades

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

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

Answer: Non-exempt employees

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

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

Answer: Merit bonus

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

Which federal law requires employers to provide eligible employees with up to 12 weeks of unpaid leave and continuation of health benefits?

Answer: FMLA

The Family and Medical Leave Act (FMLA) provides eligible employees up to 12 weeks of unpaid, job-protected leave with health benefit continuation.

What does the term 'total rewards' encompass beyond base pay and bonuses?

Answer: Compensation, benefits, work-life balance, development, and recognition

Total rewards is a holistic framework that includes compensation, benefits, well-being, career development, and recognition programs.