GR4 Practice Online

Question 1

What does it mean to lag the market?

A : Paying employees below the market rate

B : Paying employees above the market rate

C : Paying employees at the market rate

D : Adjusting pay based on market fluctuations

Answer: A

Question 2

What is variable pay?

A : Compensation that varies based on performance

B : Compensation that remains constant regardless of performance

C : Compensation that includes both fixed and variable components

D : Compensation that is determined by market data

Answer: A

Question 3

What are two timing options for merit pay programs?

A : Annual and quarterly

B : Biennial and ad hoc

C : Semi-annual and monthly

D : Seasonal and weekly

Answer: A

Question 4

Which of the following describes a characteristic of single-rate pay?

A : Increases are based on a prescribed time schedule

B : Pay rate is based on the acquisition of skills by the individual employee.

C : Each job has a fixed pay rate (one rate for all employees)

D : Employees are paid for skill set, not necessarily for job performed.

Answer: C

Question 5

What are advantages of a performance-only merit increase?

A : Provides clear differentiation based on individual performance

B : Motivates employees to improve their performance

C : Simplifies the merit increase process

D : Rewards high-performing employees more effectively

Answer: A

Name:	Base Pay Administration and Pay for Performance
Exam Code:	GR4
Certification:	Certified Compensation Professional CCP
Vendor:	WorldatWork
Total Questions:	253
Last Updated:	May 09, 2024