• An incentive program measuring performance for the calendar year is considered a long-term incentive plan.
  • The primary factor that drives pay levels is cost of living.
  • Recognition, status, job security and learning opportunities are examples of relational returns.
  • Demand and supply of talent will influence levels of pay.
  • When comparing offers of employment, salary is always the thing that matters most.
  • An employee discount on the purchase of company products is not compensation since it is not reported as taxable income.
  • Key considerations when proposing Total Rewards programs are market competitiveness, affordability, legal requirements and company culture.
  • Stakeholders in compensation design decisions include employees, company management, society and investors/stockholders.
  • The Best Fit theory suggests that since Google offers employees free lunch, other companies should, too.
  • The minimum wage laws and levels are universal. They apply to everyone, everywhere in the same way.
  • A dual career ladder means that advancement comes from a second job when the first one ends.
  • The Fair Labor Standards Act requires that men and women get paid equally for equal work.


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