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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