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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. When trying to achieve compromise and collaboration to achieve your goals, on which stakeholder(s) should you focus most of your efforts?

A) No one person. Identify your stakeholders and work to achieve consensus among the majority.
B) Influencers and decision-makers who have the respect of employees and are both proponents and opponents of your objectives
C) Individuals with power in the organization who have the authority to overrule the concerns of opponents
D) The most senior leader with the highest level of authority

2. What best describes a use of strategic analysis?

A) Forecasting profit, growth and investment performance to develop realistic budgets
B) Understanding your business and its competitive strengths and weaknesses
C) Pricing your products appropriately
D) Evaluating prior year performance for the narrative portion of annual financial reports

3. What best describes what forecasting helps the organization to do?

A) Recognize possible issues and concerns that will drive budget planning
B) Withhold payroll taxes for all elements of compensation
C) Anticipate future capital needs by determining when the organization will enter the next phase of the business lifecycle
D) Prepare quarterly and annual reports and their associated statements

4. What type of equity incentive gives employees the right to purchase company shares at a specified price?

A) Stock/share grants
B) Performance units
C) Restricted stock/shares
D) Stock/share options

5. What statement is most accurate regarding compensation communications with employees at varying levels?

A) They generally require a greater degree of detail for lower level employees who have less of an understanding of pay plan design.
B) They should be kept to a minimum for employees at all levels to maximize efficiency and efforts can be focused only on those who have questions.
C) They tend to be fairly consistent because the elements of pay may differ, but the concerns are universal.
D) They usually require more detail for senior employees regarding plan details and performance and the needs from one employee group to another can vary greatly.

Solutions: