Please answer these questions in YOUR words. Can not include more that 10% cited
1. List and discuss four possible limitations of merit pay programs.
2. Under what conditions is it appropriate for companies to adopt individual incentive
3. Subjective performance evaluations are subject to several rater errors, which makes
objective measures seem a better alternative. Discuss when subjective performance
evaluations might be better (or more feasible) than objective ratings.
4. Many compensation professionals are faced with making choices about which
discretionary benefits to drop because funds are limited and the costs of these benefits
continually increase. Assume you must make such choices. Rank-order discretionary benefits
from the ones you would most likely eliminate to the ones you would least likely eliminate.
Explain your rationale. Do such factors as the demographic composition of the workforce of the
company matter? Explain. Below is some of the benefits to consider
Health care coverage for employees 91% 9% 0%
Health care coverage for dependents 89% 9% 2%
Company-paid relocation 55% 20% 25%
Amount of employee leave accrual/balances 54% 42% 4%
Defined benefit pension plans 47% 35% 18%
Amount of employee leave carryover from one year to the
46% 42% 13%
Employer match to defined contribution (e.g. 401K) 44% 51% 5%
Paid time off 38% 57% 5%
Workplace flexibility benefits (e.g. telecommuting, flex
time, compressed workweeks)
33% 58% 8%
Paid sick time only 27% 64% 9%
Paid personal days only 22% 67% 11%
Paid vacation time only 9% 91% 0%
5. The authors of these articles focuses on a number of things relating mostly to
indirect compensation. Based on your experiences and readings, what do you see as
the future of benefits? How do you envision benefits evolving? Both articles are
Alexander, S. (2015). The secret weapon of modern benefits: A strategic plan. Employee
Benefit Plan Review, 69(9), 12-13.
Brown, D. (2014). The future of reward management: From total reward strategies to
smart rewards.Compensation & Benefits, 46(3), 147-151.
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