Laws
Which federal law governs unemployment insurance tax?
FUTA (The Federal Unemployment Tax Act)
Which job evaluation method systematically ranks jobs by comparing each role to others?
Paired comparison
How much of their budget do most companies allocate towards Compensation and Benefits?
About 1/5th of their total budget
Which theory is focused on maintaining internal fairness within the organization?
Equity Theory
What is a market compensation policy?
A compensation policy that pays similar to what the market offers
Minimum wage requirements and child labor laws are a part of what Act?
FLSA (Fair Labor Standards Act)
What is the purpose of job evaluation systems?
Determine pay structure
An appropriate compensation package should ________ people to stay with the organization
Motivate, Incentivize etc.
Which theory suggests that rewarding high performance encourages more productive behavior?
Reinforcement Theory
What pay philosophy subtracts a percentage from the market rate?
Market Minus
How many employees are needed in order for the Affordable Health Care Act to require companies to provide health insurance?
50
What job evaluation method is primarily used in expensive data-driven systems?
Hay Profile
What are some indirect benefits for a company that result from a good compensation plan?
Fewer sick days, fewer disability claims
What is the defining factor of Expectancy Theory?
The expected reward will dictate how hard the employee works
How does the value of a specific job to an organization influence its compensation level?
Higher value, higher pay
Which law allows for a 180-day statute of limitations for equal pay lawsuits?
The Lilly Ledbetter Fair Pay Act
What is the defining characteristic of the Point Factor System?
It uses compensable factors like leadership and responsibility to assign value to jobs
How does a compensation plan enhance customer service within an organization?
Gives employees incentive to provide better service
What are the 3 other types of Compensation methods mentioned?
Fringe Benefits, Health Benefits, 401K plans
What is an internal factor that impacts an organization's compensation decisions by implementing a mandated pay scale?
A Union
The Legally required payroll tax that is used to pay for Retirement Income is called what?
Social Security
The Job Classification System groups every job based on these 3 main factors.
Knowledge/Skills required, years of experience, and amount of authority
How does a compensation plan indirectly influence an organization's ability to expand into new markets or regions?
Facilitates organizational growth
Which Pay Theory is being used here?
"HR has implemented a new pay structure that rewards employees with bonuses for hitting certain sales milestones hoping that it will improve productivity."
Reinforcement Theory
How does a low unemployment rate affect a company's compensation?
A lower unemployment rate means fewer job candidates raising salaries