C1 Practice Exam Questions with Answers Regulatory Environments for Compensation Programs Certification

Compensation professionals should anticipate the level of the audience and tailor messages to their needs.

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.

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.

Compensation terms are well-known and easily understood by most stakeholders.

Allow employees easy and unlimited access to documentation

Be consistent in procedures and completeness

Use one survey source instead of several

To achieve organizational cost savings through base pay reductions

To increase employee identification with the organization's success

To defer compensation expenses to future reporting periods

To reward individual employees for some significant contribution   

Americans with Disabilities Act

Vocational Rehabilitation Act

Civil Rights Act of 1991

Age Discrimination in Employment Act

Investors and Finance want to see money spent wisely. Legal must ensure compliance, and HR and operating departments want to see their needs taken into account to attract, retain and motivate a high quality workforce.

Operating departments and HR understand the company must live within its means and Finance cannot allocate funds to a budget if it is likely that profitability will be adversely affected.

Investors want to maximize gains and want to see compensation tightly controlled and Legal needs to ensure that compensation plans do not attract undue scrutiny.

Operating departments view compensation as it applies to them, HR must balance available resources to attract, retain and motivate employees and Finance knows the value of a motivated workforce and will provide the budget necessary to achieve it.

Keep them brief

Use multiple media

Include all details related to the issue

Leave backup data out of the presentation so there is time to develop an effective response to unexpected questions

Employers must include stock profits in overtime calculations.

Employees must hold options for at least 3 months.

Employees are not required to participate

Stock options may be granted at a 20% discount

In the methods and processes used to make pay decisions

In the details of their individual compensation packages

In the overall program objectives

In the differences in pay levels for the different levels of the organization