As HR Director,you Are Discussing the Implementation of a Competency-Based

question 115

Multiple Choice

As HR director,you are discussing the implementation of a competency-based compensation system with the company's CEO.You point out that in order for the competency system to be effective

• A) the company must place its base pay in the third quartile.
• B) the company's pay structure must be broad-banded.
• C) the company must invest heavily in employee training programs.
• D) the company must implement work teams.

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Definitions:

FICA Tax

Federal Insurance Contributions Act tax; a United States federal payroll (or employment) tax imposed on both employees and employers to fund Social Security and Medicare.

Federal Income Taxes

Federal income taxes are taxes levied by the national government on taxable income of individuals, corporations, trusts, and other legal entities.

Health Insurance Premium

The amount paid, often on a monthly basis, for health insurance coverage to the insurance provider.

Retirement Fund

A financial arrangement designed to replace employment income upon retirement, accumulated through contributions from employers, employees, or both.