Compensation management primarily aims to ___ and ___ employees.

Attract and retain

True or False: Indirect compensation includes monetary benefits only.

False. Indirect compensation includes both monetary and non-monetary benefits.

List two primary categories of employee compensation.

Direct compensation and indirect compensation.

The median annual salary for compensation and benefits managers in 2022 was approximately ___ dollars.

$131,280

Fill in the blank: A well-designed compensation mix can increase employee ___ and ___.

Productivity and performance

What role does compensation management play in legal compliance?

It ensures adherence to pay equity laws and reporting requirements related to employee wages.

True or False: Compensation management software focuses primarily on future potential rather than historical contributions.

False. Compensation management software tends to focus on an employee's historical contributions.

Name one challenge in compensation management related to budget constraints.

Compensation packages can consume a significant portion of a company’s budget, limiting competitive offerings.

Fill in the blank: Effective compensation management enhances employee ___ and reduces turnover.

Morale

What is the significance of on-demand pay in compensation management?

On-demand pay allows employees to receive payment for hours worked before payday, enhancing financial flexibility.

List two types of indirect compensation.

Health insurance and paid leave.

True or False: Employee commissions are typically fixed and do not vary based on sales performance.

False. Commissions are often based on meeting sales quotas or revenue targets.

What are two key features to look for in compensation management software?

Data visualization tools and automated reporting tools.

Fill in the blank: Managing major expenses is critical because salaries often represent a company’s largest ___ .

Expense

How can compensation management support diversity, equity, and inclusion initiatives?

By analyzing compensation data for wage disparities based on gender and race.

What is a common practice in compensation management to adapt to remote work?

Adjusting compensation strategies based on geographical wage differences.

True or False: Continuous monitoring of compensation plans is optional and not essential for organizations.

False. Continuous monitoring is essential to ensure the effectiveness of compensation plans.