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Step-rate increase programs provide employees the opportunity to receive two regular pay increases at which points?

  1. At established dates and then every six months thereafter
  2. On January 1 and July 1 of each year
  3. Once when they move a step, and again when the step value changes
  4. At the anniversary date and at the annual merit increase date

Answer(s): C



Upon which criterion are step increases typically based?

  1. Market adjustment
  2. Longevity
  3. Individual performance
  4. Skills

Answer(s): B



What type of pay increase is given when an organization finds that its compensation program is behind competitive market rates?

  1. General
  2. Cost of living
  3. Automatic
  4. Merit

Answer(s): A



When would an employee most likely receive a differential in addition to the regular hourly rate?

  1. When working in more than one department
  2. When working less time than his or her normal schedule
  3. When working in locations other than the corporate office
  4. When working a holiday or weekend

Answer(s): D






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