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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Employer-sponsored death benefits are most commonly based on which of the following?

A) The employee's health history
B) The size of the employee's family
C) The employee's annual salary
D) The employee's premium contributions

2. Which of the following best describes the most likely perspectives of different groups in the organization that compensation professionals must be aware of?

A) Investors and Finance want to see money spent wisely. Legal must ensure compliance, and HR and operating departments want to see their needs taken into account to attract, retain and motivate a high quality workforce.
B) Operating departments and HR understand the company must live within its means and Finance cannot allocate funds to a budget if it is likely that profitability will be adversely affected.
C) Investors want to maximize gains and want to see compensation tightly controlled and Legal needs to ensure that compensation plans do not attract undue scrutiny.
D) Operating departments view compensation as it applies to them, HR must balance available resources to attract, retain and motivate employees and Finance knows the value of a motivated workforce and will provide the budget necessary to achieve it.

3. Which of the following might be an example of the influence of the Americans with Disabilities Act on compensation?

A) Companies must conduct pre-employment medical exams on all new employees
B) Companies should determine pay based on physical skills
C) Special promotion requirements must be developed for the disabled employee
D) Job descriptions must be written to ensure they cover the critical functions of the job

4. What best describes an effective core technique for communicating with executives?

A) Provide a wide range of facts and figures. With their high level of responsibility, executives must have all the data before they can make informed decisions.
B) Recommend a solution that will solve the issue and explain why it is the best solution available.
C) Focus on negative issues first, such as compensation costs exceeding budget, to get their attention
D) Assume they have little knowledge of the issue and make a detailed presentation leading up to the purpose of the meeting.

5. What best describes what forecasting helps the organization to do?

A) Recognize possible issues and concerns that will drive budget planning
B) Withhold payroll taxes for all elements of compensation
C) Anticipate future capital needs by determining when the organization will enter the next phase of the business lifecycle
D) Prepare quarterly and annual reports and their associated statements

Solutions: