Compensation @ Amway Quiz

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| By Iuli4ka
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Iuli4ka
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Quizzes Created: 1 | Total Attempts: 57
| Attempts: 57
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  • 1/13 Questions

    Pay ranges are set in such a way that pay can be differentiated based on experience, expertise and performance.

    • True
    • False
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  • 2. 

    What qualifies a position for a promotion?

    • The years of experience of the position holder and increased business need.

    • Years of experience on the current position and increased business need.

    • Higher scope and responsibility of the position due to permanent increased business need.

    Correct Answer
    A. Higher scope and responsibility of the position due to permanent increased business need.
    Explanation
    Promotion depends on business need and functional requirements.

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  • 3. 

    The merit matrix is designed to assure our employees receivemarket-competitive pay based on an _______ on ________.Please choose two correct replies?

    • Years in the position

    • Employee’s performance

    • Years with the company

    • Individual competencies

    Correct Answer(s)
    A. Employee’s performance
    A. Individual competencies
    Explanation
    In alignment with Amway’s pay for performance philosophy, merit program supports performance differentiation through the use of a merit matrix. The merit matrix is designed to assure our employees receive market-competitive pay based on an employee’s performance on individual competencies.

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  • 4. 

    The Global Grade is defined by:

    • The years of experience of the position holder

    • The scope of a position

    • The performance of an employee

    • The education of an employee

    Correct Answer
    A. The scope of a position
    Explanation
    The grade is based on the job only.

    The grade is not based on how the individual performance, tenure or age of the employee.

    Job Evaluation and grading is done before the recruitment process and it is not individual specific.

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  • 5. 

    Lump Sum is a one-time payment that is recommended for employees whose salary is near to or at the midpoint of the pay range.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Lump sum is applicable for the employees who are paid high in the pay-range.

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  • 6. 

    ___________ indicates the employee’s pay position on the pay range

    • Bonus target

    • Compa-Ratio

    • Global Grade

    Correct Answer
    A. Compa-Ratio
    Explanation
    Compa-ratio indicates the employee’s pay position on the pay range.

    It is the ratio of employee’s salary to the midpoint of the pay range for a given grade.

    Pay at midpoint of the range has a compa-ratio of 100%. Pay that is 10% above midpoint, has a compa-ratio of 110%.
    Pay 10% below midpoint has a compa-ratio of 90%

    Pay Ranges and consequently Compa-ratio are adjusted according to the respective FTE count.
    Ex.: If an employee, is 0.5 FTE, Midpoint of the pay-range will be divided by half.

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  • 7. 

    Plan bonus payout occurs in _____ of the following year according tolocal payroll schedule.

    • March

    • June

    • April

    • January

    Correct Answer
    A. March
    Explanation
    Plan payout occurs in March of the following year according to local payroll schedule.

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  • 8. 

    What is the cut-off date for merit award eligibility?

    • 1st September

    • 31st March

    • 1st October

    • 31st December

    Correct Answer
    A. 1st October
    Explanation
    Employees must be hired on or before 30th September to become merit eligible

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  • 9. 

    Please choose all components of ACIP bonus payout:

    • Employee’s Annual Incentive Target

    • Company Performance Multiplier

    • Individual Performance Multiplier

    • Basis Amount for Payout

    Correct Answer(s)
    A. Employee’s Annual Incentive Target
    A. Company Performance Multiplier
    A. Individual Performance Multiplier
    A. Basis Amount for Payout
    Explanation
    Annual cash incentive awards are determined by the following measures:

    Basis Amount for Payout: For 2017, the basis for ACIP payout is an employee’s (prorated) annualized base pay as of 12/31.

    An employee’s annual incentive target is payout amount based on a percentage of their annual base salary of the plan year and his/her job grade.

    The company performance multiplier is determined by comparing actual company performance to the preset threshold, target and maximum performance levels. The company performance multiplier can be any value between 50 percent – 200 percent, or it can be zero percent if the company fails to meet threshold performance.

    Individual performance multiplier is determined by ranking the employee’s performance score on objectives against the scores of other employees during the calibration process.

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  • 10. 

    Employee was on the leave of absence from January 1st untilNovember 1st. Which of the following statements is correct?

    • The employee will not receive a bonus and merit award.

    • The employee is eligible for a pro-rated bonus award but not merit increase.

    • The employee is eligible for a pro-rated bonus award plus a merit award.

    • The employee receives a 100% bonus payout for the whole year and pro-rated merit increase.

    Correct Answer
    A. The employee is eligible for a pro-rated bonus award plus a merit award.
    Explanation
    Employees on leave of absence working for less than 90 days in 2017 and employed as of 12/31/2017.
    → Pro-rated Bonus, default multiplier 1.0
    → Merit eligible, default 3.0 competency score

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  • 11. 

    The merit increase that an employee gets depends on? Please choose all components.

    • Objective Scores

    • Competency Scores

    • Compa-Ratio

    • Budget

    Correct Answer(s)
    A. Competency Scores
    A. Compa-Ratio
    A. Budget
    Explanation
    As per our Global Merit Increase philosophy, Merit Increase is driven by:

    Employee’s annual year’s Competency Score. Higher the score typically higher the merit increase.

    Second parameter that impacts the merit increase % is placement in the pay-range (Compa-Ratio) which means that an employee who is paid towards the lower end of the pay-range gets a higher increase and vice-versa.

    Also depends on the affiliate’s merit increase budget.

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  • 12. 

    An employee joined the company on October 1st. Which of the following statements is correct?

    • The employee is eligible for a pro-rated bonus award plus a merit award

    • The employee will not receive a bonus and merit award

    • The employee receives a 100% bonus payout for the whole year

    • The employee is eligible for a pro-rated bonus award

    Correct Answer
    A. The employee is eligible for a pro-rated bonus award
    Explanation
    Employees hired on or after 10/01/2017.
    → Pro-rated Bonus, default multiplier 1.0
    → No merit increase

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  • 13. 

    The Final Objective score has impact on:

    • Pay/ Salary increase (Merit)

    • Incentive Reward/ Bonus (ACIP)

    • % of Compa ratio

    • All of the above

    Correct Answer
    A. Incentive Reward/ Bonus (ACIP)
    Explanation
    Amway’s incentive programs reward employees for company financial performance and individual performance based on his/her objectives.

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  • Current Version
  • Mar 15, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Dec 08, 2017
    Quiz Created by
    Iuli4ka
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