Which Statement Is True About Pay Ranges

question 11

Multiple Choice

Which statement is true about pay ranges?

• A) Pay ranges are most common for blue-collar jobs and those covered by union contracts.
• B) Pay ranges are widest for employees who are at lower levels in terms of their job evaluation points.
• C) Pay ranges generally are designed so they do not overlap.
• D) The market rate or the pay policy line generally serves as the midpoint of a range for the job.
• E) The less overlap, the more flexibility in transferring employees among jobs.

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Definitions:

Pay Compression

A situation where there is only a small difference in pay between employees regardless of their experience, skills, or seniority, often leading to dissatisfaction and motivational issues.

Experience Levels

Refers to the degrees of knowledge, skill, and proficiency acquired through work or education over time.

Performance Abilities

The capabilities and skills that an individual possesses which contribute to their effectiveness and efficiency in job tasks.

Wages

Generally refer to hourly compensation paid to operating employees; the basis for wages is time.