Exam 9: Evaluating the Market

You have determined that the lowest-paying employer pays it secretaries a mean total compensation of $30,000, and the highest-paying employer pays its secretaries a mean total compensation of $42,000. What is the dispersion in secretarial compensation across firms?

Typically, employees working in the natural resource sector tend to experience long periods of layoffs, while at the same time, they are paid higher compensation compared to other sectors that are less cyclical in nature. Which of the following terms best describes this phenomenon?

In order to calibrate a compensation system, a sample of 25 to 45 percent of sample of jobs should be a minimum.

Which of the following survey sources raises concerns among HR professionals about the validity of their data?

Third-party surveys tend to be inexpensive and much easier to acquire than by developing them internally.

Which of the following steps should be classified as the last step in conducting a compensation survey?

What term describes the process of adjusting survey results to account for the dated nature of compensation surveys, while at the same time, taking into consideration potential market increases in the following year?

New companies tend to compensate employees at a lower price point than existing companies when the demand for labour exceeds supply.

How does the use of questionnaires to collect data compare to personal interviews and telephone interviews?

Compensation surveys reflect the value placed on jobs by the labour market, but this does not always mean that the market values jobs fairly.

Which of the following is a potential drawback associated with using compensation consultants to gather labour market information?

Data can be collected through personal interviews, random sampling, and questionnaires.

The compa-ratio is calculated by taking the average pay of all employees holding a particular job title and then dividing this by the midpoint of the pay range for that job.

An employer is contemplating conducting their own in-house compensation surveys. Which of the following points would you caution them about?

Which of the following is NOT a procedure used to analyze and interpret survey data?

In conducting a compensation survey, the first step should be to identify the jobs to be surveyed.

Which of the following topics would typically NOT be included in survey questions asked by most consultants in the process of populating their compensation databases?

Which of the following characteristics is NOT typically considered in the selection of market comparator firms?

Briefly describe the process for analyzing and interpreting survey data.

Which of the following conditions tends to explain why jobs in the higher hierarchy positions of the public sector tend to be paid less than similar positions in the private sector?