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Study Guides
Market Pricing

Test 1 Test 2 Test 3

Market pricing jobs supports most Organizations objective of: Pay equity Pay for performance External competitiveness FLSA compliance

Market data may create problems for companies in which of the following areas:: Compression Internal equity Budgeting exercises All of the above

A job worth hierarchy refers to what? A graphical representation of an organization's structure illustrating the reporting relationships of employees The perceived internal value of the Company's jobs Ensuring that employees doing equal work are receiving equal pay The range of pay that a Company is willing to pay for an employee in a particular job

A point factor system is useful to determine: Internal equity External competitiveness An objective approach to determining bonus payouts The amount of a base pay increase during the annual review process

The combined market value from various salary survey sources is called: Whole job comparison Market composite Job Analysis Hybrid job

A suitable market match has at least _______ of shared responsibilities with the job being evaluated. 50% 66% 70% 80% 90%

Selecting a relevant labor market should NOT include: Company size Company revenue Geographic location Industry All of these may be considered part of the relevant labor market

How many benchmark jobs should be market priced in an organization? 50% 66% 70% 80% 90%

A job that is directly tied to the external market value of another internal job is __________ drafted slotted paired aligned

Which of the following market data sources are MOST LIKELY to be complimentary? Professional recruiters Custom surveys Published surveys All of these are likely to be free

Which of the following is not a decision factor when deciding what type of survey data to use? Accuracy Cost Timeliness Reliability Participants Data format All of these are factors that should be considered

Which is MOST likely to have the greatest cost? Published surveys Third-party custom surveys Self administered surveys Crowd sourced surveys

In a salary survey, how many participants must be included before results can be shared? 3 5 7 10

A single participant cannot account for more than __________ of a particular survey job. 25% 33% 50% 100%

What is the minimum percent that a survey job should be similar to your job, in order to be considered a match? 51% 67% 70% 80%

How many salary survey sources are considered ideal, when creating a market composite? 1 2 3 4 5

As a general rule, salary survey information is considered to be representative of the market within _______ , more or less.% 5% 10% 15% 75%

Salary surveys commonly under represent which segment of the market? Non-profits Publicly traded organizations Privately held organizations Small businesses

What incumbents are paid in a job can be answered by: Weighted mean Unweighted mean

Aging data is: Reducing the value of the job over time since the data is less accurate Assigning a premium to account of higher cost of labor areas Increase the value to keep up with wage movement A way to ensure that jobs with limited market data are accurately represented

If an organization wants to always be paying at least the market, what type of aging approach is recommended Lead Lag Lead/Lag Inflated

Which of the following is the least reliable kind of market data Crowd sourced Published Custom surveys Industry data

One of the problems with crowd sourced data is: It cannot be easily validated Respondents may inflate their role Participants may not fully disclose their compensation package Respondents may not disclose their salaries accurately All of the above

What market pricing approach uses the 25th percentile, 50th percentile and 75th percentile? Broad bands Market priced salary structure Pure market pricing Point factor analysis

Which of the following is an advantage to market pricing? Internal equity is preserved It is highly transparent Obtaining sufficient data is easy It is defensible on a job content basis

Grade 10 has a midpoint of $40,000 Grade 11 has a midpoint of $44,000 and Grade 12 has a midpoint of $48,400. What is the midpoint progression? $4000 10% 1 Grade 40%

What is the most typical first step in market pricing a job? Identifying if the job is a benchmark job Evaluating the job's content Assigning a midpoint to the job Finding a suitable market match for the job

Which of the following is NOT a key element of market priced salary structures? Uses points of best fit for the minimum, midpoint and maximum Aligns the 25th to the minimum, the 50th percentile to the midpoint and the 75th percentile to the maximum Internal equity and external competitiveness are balanced All of these are elements of market priced salary structures

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