WorldatWork GR4 Exam
Base Pay Administration and Pay for Performance (Page 4 )

Updated On: 7-Feb-2026

Awarding an employee a 10% increase in base pay for all hours worked after 7:00pm is an example of what type of pay differential?

  1. Shift
  2. Geographic
  3. Expatriate
  4. Step rate

Answer(s): A



What is one advantage of delivering a pay action as a periodic increase?

  1. Employee recognizes the entire increase at one time
  2. There is a greater first year cost to the company
  3. Easier administration compared to a lump-sum increase
  4. Allows organization to establish a probationary period

Answer(s): D



Why is communicating pay actions critical to the success or failure of a base pay program?

  1. It allows employees to understand how compensation is related to benefits.
  2. It ensures that the information given to employees is always correct.
  3. It reinforces the decision to join and remain with an employer.

Answer(s): C



What is the first step in setting new hire rates?

  1. Ask internal recruiters
  2. Check job postings
  3. Review incumbent salary data
  4. Review market pay studies

Answer(s): C



Which of the following is one of the performance management systems used today?

  1. Balanced Scorecard
  2. Dashboard Metrics
  3. Performance Analytics

Answer(s): A



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