GR6-C12 VARIABLE PAY - IMPROVING PERFORMANCE WITH VARIABLE PAY
What is the definition of Total Rewards? - Answer- the monetary and nonmonetary returns provided to employees in exchange for their time, talents, efforts and results
What are the drivers shape the total rewards mix? - Answer- The organizational culture, business and HR strategies
Which element gives special attention to employees action, effort, behavior or performance? - Answer- Recognition
Organizational practices, policies, and programs, plus a philosophy to help employee achieve success at home and work, which of the element of total rewards is this? - Answer- Work-life
Cash provided by an employer to an employee for services rendered, which element is this? - Answer- Compensation
Programs that any employer uses to supplement the cash compensation an employee receives, which element is this? - Answer- Benefits
Which element comprises learning experiences designed to enhance employees' skills and competencies? - Answer- Development
In which element involve plans to help employees pursue their career goals? - Answer- Career Opportunities
Which element involves the alignment and subsequent assessment of organizational, team and individual efforts toward the achievement of business goals and organizational success? - Answer- Performance
Which compensation is nondiscretionary that does not vary according to performance or
results achieved? - Answer- Fixed pay or base pay
Which statement describe best the variable pay? - Answer- Compensation that is contingent on discretion, performance or results achieved
Which of the following strategy drives HR and Total rewards strategies? - Answer- Business strategy
Which strategy is key to development of HR strategy - Answer- Business strategy
What is the flow of activities when developing the total rewards design process? - Answer- Vision, mission, business strategy & HR strategy The total rewards design begins with which of the below process? - Answer- Corporate vision and mission
What best describes the reason why the total rewards design model is circular? - Answer- The process should not become too far removed from the corporate mission
Where does base pay fit within the organization's business strategy? - Answer- An organization must first understand its compensation strategy and philosophy
What is compensation philosophy? - Answer- Statement of what the organization believes about how people should be paid. It should support the business strategy and be a good fit with the organization's culture
What are the compensation program objectives? - Answer- Internally equitable, externally competitive, affordable, understandable, legal/defensible, efficient to administer, capable of being reshaped for the future, appropriate for the organization, attract, retain, and motivate employees, create alignment of employee efforts and business objectives
What are the most common objectives of compensation program? - Answer- Internally equitable & externally competitive
What is essential while designing the compesation program? - Answer- Program should
support the organization's business strategy
Which program should be designed in a way that support the business strategy? - Answer- Compensation program
What is compensation strategy? - Answer- includes princples that guide the design, implementation, and administration of a compensation program. What programs will be used and how will the be administered.
What is the key component of compensation strategy? - Answer- how the organization intends to pay relative to its competitors for people . i.e. the desired market position
Fixed pay rewards are based on what? - Answer- Market-based, Performance based, Skilled based
Variable pay rewards are based on what? - Answer- Organizational, group or individual results, Performancebased compensation, Flexible an adaptable
What are the three categories of variable pay? - Answer- Incentive, Bonuses, Recongnition What are the elements of incentive? - Answer- Criteria determined in advance, amount of payment can vary, monetary or nonmonetary, self-funded or budgeted, nondiscretionary
What are the elements of bonuses? - Answer- Completion of specific task, amount determined in advance, monetary, budgeted, nondiscretionary
What are the elements of recognition? - Answer- Criteria broadly defined and subjective, awarded spontaneously, decision made after the fact, focused on behaviors,
monetary or nenmonetary, budgeted, discretionary
Why the bonuses are paid? - Answer- Rewards typically are contingent upon completing a specific task or objective
Why recognition variable pay is given? - Answer- Criteria for the award are discretionary
and often defined in broad terms (such as above and beyond work or exceptional customer service)
Why incentive variable pay is given? - Answer- the criteria and objective for performance and the reward schedule are determined in advance and communicated to
participants
Identify the variable pay category: Jane received and additional 5000 in compensation for remaining with the company through year end, while Carlos resigned in November and received nothing. - Answer- Bonus
Identify the variable pay category: at te staff meeting, Linda's supervisor presented her with a 100 gift certificate for staying late three weekends in a row to complete an important project. - Answer- Recognition
Identify the variable pay category: Company XYZ implemented a plan with a target payout of 10% of base pay, and actually paid 12% because results exceeded plan. - Answer- Incentive
Which of the following describes a purpose of variable pay? - Answer- To differentiate the pay of individuals who achieve results from those who do not
Which of the following is a charateristic of an incentive program? - Answer- Amount of payout can vary with performance
What is the ultimate purpose of total rewards program? - Answer- To support organization's overall business objectives
What is a business strategy? - Answer- The broad framework of principles and approaches that guide the day-to-day decisions affecting the benefits.
