Compensation Plan Quiz

What are the goals of a compensation plan?

• To attract the best people for the job

• To motivate employees to stay with the organization

• To increase morale, motivation, and satisfaction among employees

• All of the above

What is a market compensation policy?

• Paying similarly to what the market offers

• Determining the going rate and adding a percentage to the market rate

• Determining the going rate and subtracting a particular percentage

• None of the above

What are some internal pay factors that determine compensation?

• Compensation strategy

• Employer's ability to pay

• Type of industry

• All of the above

What is one of the major external pay factors?

• Current economic state

• Inflation

• Cost of living in an area

• All of the above

Which compensation policy pays higher than the market rate?

• Market compensation policy

• Market plus philosophy

• Market minus philosophy

• None of the above