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?
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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.
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Ranking, classification, factor comparison, and point factor method.- What is market pricing in compensation?
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Using salary survey data from external job markets to establish competitive pay rates for specific positions.- What is a pay grade?
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A grouping of jobs with similar worth assigned the same or similar salary range.- How does a pay band differ from a pay grade?
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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?
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Fixed monetary compensation for performing a job, excluding incentives, bonuses, or benefits.- What is variable compensation?
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Pay that fluctuates based on individual or company performance, such as bonuses, commissions, or profit-sharing.- What is a signing bonus?
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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?
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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?
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A payment offered to encourage an employee to remain with the company for a specified period.- What does total rewards encompass?
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All compensation and benefits elements including salary, incentives, health insurance, retirement plans, time off, and development opportunities.- What is a benefits audit?
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A comprehensive review of benefits programs to assess costs, coverage, utilization, and alignment with business objectives.- What is a cafeteria plan?
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A benefits arrangement allowing employees to choose among different benefit options within a dollar limit set by the employer.- What does ERISA stand for?
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Employee Retirement Income Security Act, a federal law regulating pension and health benefit plans.- What is a Summary Plan Description?
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A required document in ERISA-governed plans explaining the plan's benefits, rights, and responsibilities to participants in plain language.
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