C1 Regulatory Environments for Compensation Programs Questions and Answers

Deductible

Coinsurance

Coordination of benefits

Out-of-pocket expenses   

Davis-Bacon Act

Sherman Antitrust Act

McNamara-O'Hara Act

National Labor Relations Act

500,000

840,000

8,000,000

9,700,000

Market adjustment

Longevity

Individual performance

Skills   

There is a decreasing number of females in the workforce.

Employees are expressing a greater desire for choice in their benefits.

Employees have longer career expectations.

Decreasing costs are causing growth in the numbers of benefits employers offer.   

They are based on a predetermined performance and reward schedule.

They are offered to motivate employee performance.

They are intended to align the interests of the employee with those of the organization.

They tend to make up the larger portion of an employee's total compensation.   

They aren’t. Managers are concerned about their compensation also.

They are also responsible for merit increases, incentives and hiring so they have greater information needs.

They tend to have more influence, so it is important to resolve any concerns they have quickly and efficiently.

They have more duties and responsibilities and are less likely to have the time to discuss compensation issues.

The most senior leader with the highest level of authority

No one person. Identify your stakeholders and work to achieve consensus among the majority.

Influencers and decision-makers who have the respect of employees and are both proponents and opponents of your objectives

Individuals with power in the organization who have the authority to overrule the concerns of opponents

Fixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.

Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.

Fixed costs and variable costs are equally important and both should be kept to a minimum.

Fixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.

Personal leave

Sabbatical

Severance allowances

Paid time off (PTO) bank