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WorldatWork C1 Exam Syllabus Topics:

WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. What do profits, equity and debt all have in common?

A) They are all reported on the balance sheet.
B) They all incur the same costs to the business.
C) Nothing. Each of these is a different financial metric.
D) They are all sources of capital.

2. What best describes what forecasting helps the organization to do?

A) Withhold payroll taxes for all elements of compensation
B) Prepare quarterly and annual reports and their associated statements
C) Anticipate future capital needs by determining when the organization will enter the next phase of the business lifecycle
D) Recognize possible issues and concerns that will drive budget planning

3. The Delta Company has experienced increased turnover in the past two years. Data from exit interviews indicate that most of those leaving did so for better opportunities and higher compensation. If Delta pays at the highest percentile of the market for their peer group, what data analysis should they do?

A) No additional data analysis is needed. Delta should increase pay rates based on the existing data to decrease turnover.
B) Additional quantitative analysis to determine whether pay rates are truly competitive or existing data are unreliable
C) Qualitative data collection in the form of an employee survey with questions about employee satisfaction with pay levels
D) Qualitative data collection to talk to key stakeholders and employees and determine whether the exit interviews accurately reflect their concerns

4. Which of the following acts is focused on employers with construction contracts with the government?

A) Davis-Bacon Act
B) McNamara-O'Hara Act
C) Sherman Antitrust Act
D) National Labor Relations Act

5. Which of the following best describes the most likely perspectives of different groups in the organization that compensation professionals must be aware of?

A) Investors want to maximize gains and want to see compensation tightly controlled and Legal needs to ensure that compensation plans do not attract undue scrutiny.
B) Investors and Finance want to see money spent wisely. Legal must ensure compliance, and HR and operating departments want to see their needs taken into account to attract, retain and motivate a high quality workforce.
C) Operating departments and HR understand the company must live within its means and Finance cannot allocate funds to a budget if it is likely that profitability will be adversely affected.
D) Operating departments view compensation as it applies to them, HR must balance available resources to attract, retain and motivate employees and Finance knows the value of a motivated workforce and will provide the budget necessary to achieve it.

Solutions: