Compensation (Connect, Perform)
1. Companies that have a ______ system reward employees for improving their ability to contribute to the organization.
blank options:
a. skill-based pay
b. cafeteria plan
c. gain-sharing
d. job-based pay
Read the following scenario and then answer the questions that follow.
Denise Bennett, the owner and CEO of Extreme Routes, an indoor rock-climbing gym, needed to clear her head. She wanted to do what she did best-climb a really difficult route, at least a 5.11 on the Yosemite Decimal System, preferably with a difficulty suffix of c or d.
“Kitty, will you set up a new route for me? And make it hard.”
“Sure thing, boss. Is 5.12d okay?” Kitty, the route setter and instruction manager, had been at Extreme Routes for 7 years and was one of Denise’s closest friends.
“Perfect!”
Knowing a treat would be waiting for her that afternoon, Denise turned back to the spreadsheet in front of her. What was she going carry out these expenses? She had a good staff, and she wanted to keep them, but she wasn’t sure she was spending her budget for salaries and benefits as effectively as possible.
Denise had a basic compensation plan in place. Route setters were paid the most, because without new routes, the gym’s clients wouldn’t keep returning. Climbing instructors had the next highest take-home pay, and front desk staff were paid the least. Everyone who worked for Denise had medical, dental, vision, and life insurance. During the last staff meeting, both Kitty and Misha, the front desk manager, mentioned that many of their employees wanted to move up in the organization. That was fine with Denise, whose strategic plan included opening a new gym within the year.
2. Denise’s current approach to employee compensation is a ______ system.
blank options:
a. job evaluation
b. job-based
c. performance-based
d. skill-based
3. Denise is planning to open a new gym, and she wants to be sure that her employees can move to any open position and do well. What pay system will help her achieve this goal?
a. Pay-for-performance plan
b. Career development pay plan
c. Skill-based pay system
d. Job-based pay system
4. If Denise switched to a cafeteria-based benefits plan, she would:
a. Drop vision and dental benefits for employees
b. Eliminate nonmandatory benefits from the overall plan
c. Allow employees to choose those benefits that are most important to them
d. Require employees to get all of their benefits from external providers
