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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. When would an employee most likely receive a differential in addition to the regular hourly rate?

A) When working less time than his or her normal schedule
B) When working a holiday or weekend
C) When working in more than one department
D) When working in locations other than the corporate office

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

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

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

A) 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.
B) They generally require a greater degree of detail for lower level employees who have less of an understanding of pay plan design.
C) 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.
D) They tend to be fairly consistent because the elements of pay may differ, but the concerns are universal.

4. What is the term for the skills, technologies, applications and practices of continuous iterative exploration and investigation of past business performance used to gain insight and drive business planning?

A) Business forecasting
B) Statistical analysis
C) Business analytics
D) Predictive modeling

5. What statement is most accurate regarding communication of compensation information?

A) Compensation professionals should anticipate the level of the audience and tailor messages to their needs.
B) The ready availability of information online has made it unnecessary for compensation professionals to tailor messages since individuals can research terms and concepts after the fact if they don't understand a communication.
C) Compensation terms are well-known and easily understood by most stakeholders.
D) Compensation terms and practices are unclear to most individuals who do not work in this area and communication should be tailored to the least informed member of the target audience.

Solutions: