Comp and Ben 3
second
A recent survey shows employees ranking employee benefits _____ in explaining job satisfaction.
requiring employees to pay higher deductibles and copays
A survey shows that the majority of employers are responding to increased benefit costs by _____.
The salary range midpoint of the company is higher than the actual salary paid.
MerTon Inc. decides to reduce labor costs by using exit incentives to encourage some of its senior, high-earning members to leave the organization. It replaces the employees who quit with new employees and pays them low wages. Which of the following statements is most likely true in this scenario?
stock plans
One of the most preferred benefits is _____.
the U.S. Chamber of Commerce.
The most widely used benefit survey is conducted by:
a planned pay-level rise
The percentage increase in average pay that is expected for an organizational unit or company is called _____.
less than 15
The typical employee can recall _____ percent of the benefits he or she receives.
flexible benefit
A benefit plan that allocates a set dollar amount to employees and allows them to select benefits is called _____ plan.
employees in a range are paid below the midpoint
A compa-ratio less than 1 means that, on average, _____.
reduction in force
A major advantage of a _____ is that it reduces benefits costs, something that the other cost-cutting options ordinarily do not achieve.
known as a decentralized strategy
A management strategy of giving separate organization units the responsibility to design and administer their own compensation systems is _____.
1/3
According to one study, only _____ of organizations actually calculate the cost and value added by their pay programs.
decreased administrative expenses.
All of the following are advantages of flexible benefits EXCEPT:
decreased unemployment insurance tax rates
All of the following are adverse effects of layoffs EXCEPT _____.
provision of skills development training.
All of the following are cost-containment practices designed to reduce benefit costs EXCEPT:
foreign lawsuits
All of the following factors are reasons for the growth of benefits EXCEPT:
Benefit limitation
As part of the efforts to bring down the employee benefits cost to the company, GrindStop Corp. restricts the number of visits to the dentists covered in the dental plan to two per year. Which of the following cost-containment strategies is used by GrindStop?
increased cost savings
The major potential advantage of outsourcing is _____.
benefit cieling
By limiting liability for an employee's hospital stay costs to $200,000, an employer is using a cost-containment measure known as:
through pay surveys
Changes in wages in labor markets are measured _____.
Medical coverage
DrenchFort Corp. is a small company that pays high wages. As its wages are high, it does not provide any benefits. Recently, it has noticed that its employee turnover has increased, so it decides to provide benefits to retain employees. Which of the following benefits is most likely to reduce turnover?
The average pay actually paid by the company will fall below its range midpoint.
GronLan Inc., a company with a majority of workers with high seniority, decides to hire 1,000 college graduates to meet the sudden productivity requirements generated by a growth in the market. Which of the following statements is most likely to be happen in this situation?
15,000
HoldDesk Inc. has an annual labor cost of $3,000,000. It has a turnover rate of 10 percent and a planned average increase of 5 percent. The turnover effect is _____.
12
How many weeks of leave does Family Medical Leave Act (1993) mandate for all workers at companies that employ 50 or more people?
prices have risen faster in Philadelphia since the base year than in Houston
If Philadelphia has a CPI of 165 and Houston has a CPI of 145, and if both cities started with bases of 100, it means that _____.
be offered to employees only on a cost-sharing basis.
If a benefit forecast suggests future cost containment may be difficult, the benefit should:
reduce employment
If financially troubled employers have NOT been able to maintain competitive market positions, the conventional response has been to _____.
25, 30
In 1959, benefits were approximately _____ percent of payroll and in 2010 it was approximately _____ percent of payroll.
bonuses
Replacing merit grids with _____ eliminates the link between the pay increase and the employees' salary position in the range and performance rating.
medical insurance
Surveys show that the most highly valued benefit is:
WorldatWork
The Web page for the compensation society is _____.
ADEA
The _____ often comes into play if organizations target reductions among higher paid employees because higher paid employees also tend to be older employees.
turnover effect
The _____ recognizes the fact that when people leave an organization, they typically are replaced by employees who earn a lower wage.
The _____ requires individuals to maintain minimal essential health insurance coverage or pay a penalty unless exempted for religious beliefs or financial hardship.
The _____ requires individuals to maintain minimal essential health insurance coverage or pay a penalty unless exempted for religious beliefs or financial hardship.
50
The average company match for 401(k) retirement plan is _____ cents on the dollar up to 6 percent of pay.
outsourcing
The biggest cost-containment strategy in recent years is the movement to:
relationship of the average actual salary in each range to the midpoint of the range
The compa-ratio reflects the _____.
average pay at the beginning of the year
The denominator for calculating the current year's pay rise is _____.
finding out who should be protected or benefited.
The first issue in setting up a benefits package is:
50
Total compensation in many organizations makes up at least _____ percent of operating expenses.
determine whether the accident happened.
Trumbrella Corp. is a pharmaceuticals company. One of its employees reports that he had an on-the-job injury caused by slippery factory floor that broke his back. When Trumbrella initiates its claims processing, it should first:
pensions; medical coverage
Various studies have found that only two specific benefits curtailed employee turnover: _____ and _____.
red circle
When employees are paid more than the maximum of their pay grade, these rates are called _____ rates.
work/life balance
Which of the following benefits is NOT mandated by state or federal legislation?
DLG Corp. excludes its new recruits from benefit coverage until they complete a year
Which of the following companies uses probationary periods as a cost-containment measure?
New benefits are more difficult to introduce.
Which of the following is NOT a disadvantage of flexible benefit programs?
Financial malfeasance is completely eliminated.
Which of the following is NOT a likely consequence of a highly decentralized pay system?
RIFs are very costly in tangible terms in the long run due to decreases in unemployment insurance tax rate.
Which of the following is NOT a potential problem with headcount reductions?
Basing benefits on historical costs
Which of the following is NOT part of the cost-centered approach for deciding to provide a benefit?
Consumer price index
Which of the following is a measure of changes in prices of goods and services in the product and service markets over time?
They increase the involvement of employees in choosing benefit plans.
Which of the following is an advantage of flexible benefit plans?
Does each specific activity directly contribute to our objectives?
Which of the following is the basic question to ask to improve quality and ensure that value is added by each technique and at each stage in the compensation system?
It states that initial data strongly affect decisions/beliefs.
Which of the following statements about anchoring/framing is true?
Group insurance benefits has relatively easy qualification standards.
Which of the following statements is true of employee benefits?
COBRA
_____ allows employees who have resigned or have been laid off through no fault of their own to continue receiving health coverage under their employer's plan at a cost borne by the employee.
Product market share data
_____ are NOT used for determining employee benefit preferences.
Top-down budgeting
_____ is the budgetary approach that begins with an estimate from the highest ranking executives of the pay increase budget for an entire organization.
An employee benefit handbook
_____ is the most frequently used medium for communicating employee benefits.
Employee self-service
_____, a software package, allows workers to make health-care choices, allocate savings to 401(k)s or other savings vehicles, and access vacation schedules
Communication portals
_____, designed for employees or managers, explain compensation policies and practices, answer frequently asked questions, and explain how these systems affect their pay.
