Compensation structures, benefits administration, and total rewards concepts tested on the PHR.
40 cards · basic cards · AI-written, checked twice. Edit anything.
- What is job evaluation?
- A systematic process for determining the relative worth of jobs within an organization based on factors such as skills, responsibilities, and working conditions.
- Name four common job evaluation methods.
- Ranking, classification, factor comparison, and point factor method.
- What is market pricing in compensation?
- Using salary survey data from external job markets to establish competitive pay rates for specific positions.
- What is a pay grade?
- A grouping of jobs with similar worth assigned the same or similar salary range.
- How does a pay band differ from a pay grade?
- A pay band is a broader range allowing more flexibility in positioning pay based on skills, performance, and experience, while a pay grade has a narrower range.
- What is base pay?
- Fixed monetary compensation for performing a job, excluding incentives, bonuses, or benefits.
- What is variable compensation?
- Pay that fluctuates based on individual or company performance, such as bonuses, commissions, or profit-sharing.
- What is a signing bonus?
- One-time cash payment offered to a new employee upon hiring, often used to attract talent or offset previous employer incentives.
- What are stock options?
- An equity incentive plan giving employees the right to purchase company shares at a set price within a specified timeframe.
- What is a retention bonus?
- A payment offered to encourage an employee to remain with the company for a specified period.
- What does total rewards encompass?
- All compensation and benefits elements including salary, incentives, health insurance, retirement plans, time off, and development opportunities.
- What is a benefits audit?
- A comprehensive review of benefits programs to assess costs, coverage, utilization, and alignment with business objectives.
- What is a cafeteria plan?
- A benefits arrangement allowing employees to choose among different benefit options within a dollar limit set by the employer.
- What does ERISA stand for?
- Employee Retirement Income Security Act, a federal law regulating pension and health benefit plans.
- What is a Summary Plan Description?
- A required document in ERISA-governed plans explaining the plan's benefits, rights, and responsibilities to participants in plain language.