QUESTION: 33

In what stage of the business lifecycle do companies typically begin standardizing procedures through policy creation?

Start-up
Growth
Mature
Decline

Answer(s): B

QUESTION: 34

What metric should compensation professionals pay closest attention to for ensuring alignment between the compensation strategy and the HR and business strategies?

Variable pay costs as a percent of total compensation
Total compensation expense for the business, including base pay and variable pay
Reward costs as a percent of total operating costs
The organization's market compa-ratio

Answer(s): C

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QUESTION: 35

If employees have a significant impact on the bottom line, what type of pay mix is most appropriate?

A varying mix depending on employee influence on goals to provide the necessary incentive to maximize profits
100% variable pay to motivate all employees to maximize productivity and sales
90/10 for the majority of employees (base/variable) to share in the company's success with increased variable pay for management/executives to motivate employees to seek higher positions
High base pay and low variable pay to ensure predictability of total compensation expense

Answer(s): A

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Which of the following factors has the greatest impact on how aggressive a stance (high vs. low) an organization will take in terms of where it positions itself against the market with its compensation strategy?

The industry it operates in
The bottom line
The organizational headcount
The risk tolerance of compensation leaders

Answer(s): B

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QUESTION: 33

QUESTION: 34

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QUESTION: 36

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