HR Rules!
Are We Done Yet?
MSB
Lakeville
Terrific Tuesday
100
Total of all rewards provided to employees in return for their services.
What is Compensation?
100
Pay that a person receives in the form of wages, salary, commissions and bonuses.
What is Direct Financial Compensation?
100
All financial rewards that are not included in direct financial compensation.
What is Indirect Financial Compensation?
100
Satisfaction that a person receives from the job itself or from the psychological and/or physical environment in which the person works.
What is Non-Financial Compensation?
100
Employees categorized as executive, administrative, professional, or outside salespersons.
What are Exempt Employees?
200
Process that determines the relative value of one job in relation to another.
What is Job Evaluation?
200
Job evaluation method in which the raters examine the description of each job being evaluated and arrange the jobs in order according to their value to the company.
What is the Job Evaluation Ranking Method?
200
Job evaluation method in which classes or grades are defined to describe a group of jobs.
What is the Classification Method?
200
Job evaluation method that assumes there are five universal factors consisting of mental requirements, skills, physical requirements, responsibilities and working conditions. The evaluator makes decisions on these factors independently.
What is the Factor Comparison Method?
200
Job evaluation method in which the rater assigns numerical values to specific job factors such as knowledge required, and the sum of these values provides a quantitative assessment of a job's relative worth.
What is the Point Method?
300
Average pay that most employers provide for a similar job in a particular area or industry.
What is the Market (Going) Rate?
300
Organizations that pay salaries higher than competing firms.
What are Pay Leaders?
300
Companies that choose to pay below the going rate because of a poor financial condition or a belief that they do not require highly capable employees.
What are Pay Followers?
300
Escalator clause in a labor agreement that automatically increases wages as the U.S. Bureau of Labor Statistics' cost-of-living index rises.
What is Cost-of-Living Allowance (COLA)?
300
Placing a dollar value on a job's worth.
What is Job Pricing?
400
Minimum and maximum pay rate with enough variance between the two to allow for a significant pay difference.
What is Pay Range?
400
Pay increase added to employee's base pay based on their performance level.
What is Merit Pay?
400
System that compensates employees for their job-related skills and knowledge, not for their job titles.
What is Skill-Based Pay?
400
Compensation plan that rewards employees for the capabilities they attain.
What is Competency-Based Pay?
400
Special benefits provided by a firm to a small group of key executives and designed to give the executives something extra.
What are Perquisites (Perks)?
500
Motivation theory that people assess their performance level and rewards they receive against the performance and rewards received by another person, in deciding if they are "treated fairly."
What is Equity theory?
500
Equity that exists when employees receive pay according to the relative value of their jobs within the same organization.
What is Internal Equity?
500
Equity that exists when individuals performing similar jobs for the same firm receive pay according to factors unique to the employee, such as performance level or seniority.
What is Employee Equity?
500
Compensation techniques that collapses many pay grades (salary grades) into a few wide bands in order to improve organizational effectiveness.
What is Broadbanding?
500
Situation that occurs when less experienced employees are paid as much or more than employees who have been with the firm a long time.
What is Salary Compression?
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