Worldatwork Exam CECP Topic 1 Question 67 Discussion

Actual exam question for Worldatwork's CECP exam

Question #: 67
Topic #: 1

[All CECP Questions]

What is a primary purpose of pay grades or bands?

ATo identify a compensation range in which to group multiple jobs with similar value

BTo meet legal and regulatory requirements for classifying jobs according to market value

CTo provide documentation that supports termination decisions

DTo justify paying some employees less than market based on internal administrative limitations

Show Suggested Answer

Suggested Answer: A

by Carlee at Sep 08, 2024, 08:11 AM

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Margart

9 months ago

I think pay grades or bands are important for internal equity and transparency in compensation decisions.

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Arminda

9 months ago

I agree with Layla. Option A is the clear winner here. Pay grades are all about organizing compensation structure, not about legal loopholes or excuses to underpay.

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Wynell

9 months ago

I believe it also helps in attracting and retaining talent by offering competitive salaries within the market range.

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Mona

9 months ago

Pay grades are important for documentation, but I don't think that's their primary purpose. Option C seems more like a secondary benefit.

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Noel

9 months ago

Haha, option D is a bit of a stretch. I doubt companies would use pay grades to justify paying less than market value. That's just poor business practice.

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Trinidad

8 months ago

A) To identify a compensation range in which to group multiple jobs with similar value

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Tracey

8 months ago

C) To provide documentation that supports termination decisions

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German

8 months ago

B) To meet legal and regulatory requirements for classifying jobs according to market value

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Leana

9 months ago

A) To identify a compensation range in which to group multiple jobs with similar value

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Felix

9 months ago

I agree with Fairy. It helps in ensuring fair and consistent pay for similar roles within an organization.

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Lynelle

9 months ago

Option B makes sense too, as pay grades help organizations comply with legal requirements for job classifications.

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Lezlie

9 months ago

B) To meet legal and regulatory requirements for classifying jobs according to market value

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Joana

9 months ago

A) To identify a compensation range in which to group multiple jobs with similar value

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Layla

10 months ago

I think the primary purpose of pay grades or bands is to identify a compensation range for similar jobs. Option A seems to be the most logical choice here.

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