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C12: Total Rewards And Variable Pay – Questions & Accurate Answers
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C12: Total Rewards And Variable Pay – Questions & Accurate Answers
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C12: Total Rewards And Variable Pay – Questions &Accurate Answers
Total rewards Right Ans - monetary and non-monetary returns provided to
employees for their time, talents, efforts and results
Total rewards strategy Right Ans - the art of combining the five key
elements into tailored packages designed to achieve optimal engagement.
Five elements of total rewards strategy Right Ans - compensation, benefits,
work-life, performance an recognition, development and career opportunities.
Elements of compensation Right Ans - fixed pay and variable pay
Fixed pay Right Ans - nondiscretionary compensation that does not
regulary vary according to performance or results achieved. based on
employee value: market based, performance based, skill based
Variable pay Right Ans - discretionary or contingent on performance or
results achieved and can be designed for any individual or combination of
individuals. rewards for accomplishments, and results
Three categories of variable pay Right Ans - incentives, bonuses and
recongition
Incentives Right Ans - criteria determined in advance, amount of payment
varies, monetary or non-monetary, self-funded or budgeted, non-
discretionary.
Bonuses Right Ans - reward the completion of a specific task, amount is
determined in advance, budgeted, non-discretionary
Recognition Right Ans - criteria broadly defined and subjective, awarded
spontaneously, decisions made after the fact, focused on behaviors, budgeted,
discretionary
, Short term incentive Right Ans - consist of plans for which desired results
will be achieved in one year or LESS. profit sharing, performance sharing,
individual performance based.
Profit sharing plans Right Ans - share profits with employees, base rewards
on fiscal performance, typically include the entire organization, payout in
equal or graduated amounted. Objects of profit sharing are to foster EE
identification with org success and create a common focus.
Profit sharing plan approaches Right Ans - first return plans, threshold
plans, operating budget, peer comparisons
Profit sharing plan considerations Right Ans - promote awareness/focus,
payout only when the company has profit, EE ability to influence overall
profit, SIMPLE administration.
Performance sharing plans Right Ans - define performance by selected
criteria, focus on more than fiscal results, exist at all organizational levels,
measure performance based on predetermined objectives, defined for a
specific period.
Performance sharing plan appproaches Right Ans - improve org
performance, foster EE identification with org success, increase EE
understanding, promotes a more balanced approach.
Performance sharing plan considerations Right Ans - promote focus, self-
funding, EE ability to influence overall performance, flexibility of design,
increases administrative requirements
Individual performance based plans Right Ans - base payouts on individual
performance, focus on more than fiscal results
Individual performance sharing plans objectives Right Ans - fosus on
personal performance improvement, increase employee understanding, link
rewards with personal performance.
Individual performance sharing plans approaches Right Ans - performance
agains predetermined objectives, output based, commission based.
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