C17 WorldatWork Market Pricing - Conducting a Competitive Pay Analysis Free Practice Exam Questions (2025 Updated)

By offering above-market pay to attract higher performing employees

By offering below-market pay to save costs

By providing poor work environment

By offering market level pay

Offering higher compensation than competitors

Providing only monetary compensation

Determine the right mix of reward components that meet the goals of attracting the right talent while staying within the budget

Offering only non-monetary rewards

Start-Up

Growth

Mature

Decline

Pay range

Market rate composite

Slotting

Pay policy

Awarded pertains to profit sharing plans while target pertains to performance.

Target represents what was actually paid, awarded represents what would be paid if the plan pays out at expected levels.

Awarded represents what was actually paid, target represent what would be paid if the plan pays out at expected levels.

It is never appropriate; organizations should not share pay decision?

If the organization culture supports open communications.

If the organization's competitors practice open communications.

At least 80%

At least 70%

At least 60%

At least 50%

Pay philosophy, job tenure, variations in responsibility

Job title, geographic location, industry sector

Company size, job level, education level

Age, gender, race

Verify survey data

Analyze job content

Identify benchmark jobs and match to survey job descriptions

Identify relevant labor markets

Small sample size, lack of transparency, unclear data

Sample size is large enough to be valid, no secrets - gives key elements, effective date of the data, term definitions, clarity of statistic, and position descriptions, sources identified

Biased data, vague descriptions, lack of data

Outdated data, undefined terminology, small sample size

A system for distributing bonuses to employees

A set of policies and procedures for administering employee pay

The organization's approach to paying employees

The specific salary levels and ranges for each job in the organization

Conducting own survey only

Custom third-party surveys only

Published surveys only

Both conducting own survey and custom third-party surveys

markets which exclude geographic location and organizational size

Labor market(s) against which the organization must equal its pay levels

Market(s) from which an organization draws and loses its employees

Labor market information that is generally applicable only to the manufacturing sector

Compensation philosophy and strategy only

Quality of surveys only

Quality of job match only

Sample size only

Compensation philosophy and strategy, quality of surveys, quality of job match, sample size

When market data are not available for a specific job

When an organization is undergoing a restructuring process

When an employee is promoted to a higher position

When an organization is experiencing financial difficulties

No. of months to age x annual aging factor

No. of months to age/12 months

No. of months to age/12 months x annual aging factor

Annual aging factor x 12 months

Convey a different message to different employees

Align with individual goals

Encourage secrecy

Convey a consistent message, align with mission, vision, and business strategy, encourage feedback, follow-up on feedback

Information about each job in an organization

Information necessary to complete the job evaluation process

Principles that guide the design, implementation and administration of a compensation program.

Statement of what the organization believes about how people should be rewarded.

At least 80%

At least 70%

At least 60%

At least 50%