The Salary Talk Quiz

2.

Companies are required to give pay raises each year, except in cases of poor employee performance.

True
False

Correct Answer

A. False

Explanation

Companies are not required to give pay raises each year. Pay raises are typically based on factors such as employee performance, company policies, and financial considerations. Poor employee performance may be a reason for not giving a pay raise, but it is not the only factor. Ultimately, pay raises are at the discretion of the company and may vary depending on various circumstances.

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3.

The No. 1 reason employees leave to take a job at another company:

They feel like they’re underpaid
They dislike their immediate supervisor
They’re seeking a new challenge
They want a shorter commute
None of the above

Correct Answer

A. They dislike their immediate supervisor

Explanation

Employees leaving a job because they dislike their immediate supervisor is a common reason for job turnover. A supervisor plays a crucial role in an employee's experience at work, directly impacting their job satisfaction and overall happiness. If an employee has a negative relationship with their supervisor, it can lead to frustration, lack of motivation, and a desire to seek employment elsewhere. A poor supervisor-employee relationship can create a toxic work environment, making it difficult for employees to thrive and grow professionally. Therefore, disliking their immediate supervisor is a valid explanation for why employees leave for another job.

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4.

A company should only make a counter-offer to a departing employee, if:

The employee can increase company revenue by 3%
The company can afford to give him or her a pay raise
The employee agrees to stay for five more years
The company has resolved the issues that made the employee to look elsewhere
None of the above

Correct Answer

A. The company has resolved the issues that made the employee to look elsewhere

Explanation

If a company has resolved the issues that made the employee look elsewhere, it would be appropriate to make a counter-offer. This suggests that the employee's reasons for wanting to leave have been addressed, potentially increasing the chances of retaining the employee. The other options listed in the question (increasing company revenue, affordability of a pay raise, and employee agreeing to stay for five more years) do not necessarily guarantee that the issues causing the employee to consider leaving have been resolved.

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5.

Depending upon the employee, it is acceptable to establish bonus pay criteria that doesn’t aid the company’s overall goals.

True
False

Correct Answer

A. False

Explanation

Establishing bonus pay criteria that doesn't aid the company's overall goals is not acceptable. This is because bonus pay criteria should be aligned with the company's objectives and contribute to its success. If the criteria for bonus pay are not in line with the company's goals, it could lead to misalignment, decreased motivation, and potentially harm the company's performance. Therefore, it is important to establish bonus pay criteria that support and align with the company's overall goals.

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6.

It is smart for managers to tell employees that they are average employees and are getting an average raise.

True
False

Correct Answer

A. False

Explanation

Telling employees that they are average and will receive an average raise is not a smart approach for managers. This can demotivate employees and make them feel undervalued. It is important for managers to provide constructive feedback and recognize individual achievements to boost morale and encourage growth. By acknowledging and rewarding exceptional performance, managers can inspire employees to strive for excellence and contribute more effectively to the organization.

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7.

It’s okay to give employees a bigger raise than they deserve, because they:

Have a child starting college
Are a single parent
Their spouse just lost their job
Have a baby on the way
None of the above

Correct Answer

A. None of the above

Explanation

The correct answer is "None of the above" because giving employees a bigger raise than they deserve should not be based on personal circumstances such as having a child starting college, being a single parent, their spouse losing their job, or having a baby on the way. Raises should be given based on performance, skills, and contributions to the company, rather than personal factors unrelated to work.

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8.

If salary and pay raises aren’t explained fully and clearly:

Employees will let their imaginations run wild and fill in the gaps for you
The company could run afoul of FMLA rules
Employees might file a class action lawsuit
Employees can ask OSHA to investigate
None of the above

Correct Answer

A. Employees will let their imaginations run wild and fill in the gaps for you

Explanation

If salary and pay raises aren't explained fully and clearly, employees will let their imaginations run wild and fill in the gaps for you. This means that without clear communication about salaries and pay raises, employees may start making assumptions and speculating about their own compensation, leading to misunderstandings and potential dissatisfaction among the workforce. This can create a negative work environment and affect employee morale and productivity.

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9.

In 2010, the average compensation for a CEO of a large U.S. corporation is how many times the compensation for an average worker

57 times
155 times
287 times
364 times
433 times

Correct Answer

A. 364 times

Explanation

The correct answer is 364 times. This means that the average compensation for a CEO of a large U.S. corporation in 2010 was 364 times higher than the compensation for an average worker. This large difference in compensation highlights the significant income inequality that exists between CEOs and workers in the United States.

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10.

Employees who are doing the same work should get the same pay, even if there is a substantial difference in experience.

True
False

Correct Answer

A. False

Explanation

This statement is false because pay should be based on factors such as experience, skills, and performance. It is common for employees with more experience to receive higher pay as they have likely acquired more knowledge and skills over time. Additionally, experience can contribute to better job performance, which can justify higher pay. Therefore, it is not fair to expect employees with different levels of experience to receive the same pay.

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The Salary Talk Quiz

Conversations about salary adjustments should include:

Quiz Preview

Companies are required to give pay raises each year, except in cases of poor employee performance.

The No. 1 reason employees leave to take a job at another company:

A company should only make a counter-offer to a departing employee, if:

Depending upon the employee, it is acceptable to establish bonus pay criteria that doesn’t aid the company’s overall goals.

It is smart for managers to tell employees that they are average employees and are getting an average raise.

It’s okay to give employees a bigger raise than they deserve, because they:

If salary and pay raises aren’t explained fully and clearly:

In 2010, the average compensation for a CEO of a large U.S. corporation is how many times the compensation for an average worker

Employees who are doing the same work should get the same pay, even if there is a substantial difference in experience.