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

Internally equitable

Externally competitive

Expensive to administer

Legal/defensible

To establish a hierarchy of job titles within an organization

To determine an employee's overall worth to the organization

To ensure external equity among positions and groups of positions

To determine internal equity among positions and groups of positions

You can customize the survey to meet your specific needs

You have full control over the survey data and methodology

You can negotiate the survey pricing with the vendor

You may receive a substantial discount if you participate in the survey

May be difficult to obtain data, may not be aligned with internal equity, not defensible on job content basis, may be overly time consuming

Simple to administer and update for currency, responsive to the market, not overly time consuming compared to other methods, high degree of transparency

Does not consider market rates, limited in accuracy, subjective, not useful for large organizations

May not accurately reflect job value, subjective, may not be useful for small organizations

To determine which jobs should be grouped together and form the foundation of the base pay system

To assign grades to non-benchmarked jobs

To determine internal and external equity

To adjust pay rates based on cost-of-living adjustments

Averaging

Blending

Extrapolation

Regression

Linear regression

Summary statistics

Maturity curves

The extent to which the survey has been audited

The number of survey questions

The type of survey methodology used

The length of the survey

To adjust the data for inflation

To adjust the data for changes in the job market

To adjust the data for changes in the industry

To adjust the data for changes in the survey methodology

Job titles

Industry

Geographic location

Education and experience requirements

All of the above

Setting pay at mid-year anticipated market level

Setting pay below market levels

Setting pay above market levels

Setting pay at current market levels

Any market inequities are built in

Simple to administer

Takes into consideration the company's perceived value of a job

Legally defensible based on job content

Sign-on bonuses

Referral bonuses

Retention bonuses

All of the above

Only when pay decisions are positive

If the HR department supports open communication

If employees have a union representative

If the organizational culture supports open communication

The HR Manager

Senior Executives

Managers and supervisors (or the person to whom the employee directly reports).

Job title, geographic location, industry sector

Age, gender, race

Employee performance ratings, job satisfaction surveys, attendance records

Sample size, participant base, statistical analyses, survey methodology, job matching procedures

Focus on broadly defined job roles

Focus on individual employees with specific skills

Focus on internal value to the organization

Long-term incentives

Direct benefits expenses

Event tickets

The combination of base pay, benefits, and bonuses that an employee receives

The total value of all compensation and benefits paid to employees in a given year

The rewards and recognition programs offered by an organization to motivate employees

The sum of all compensation and benefits paid to an employee over the course of their career