Society For Human Resource Management (SHRM) Certified Professional Practice Exam

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Study for the SHRM Certified Professional Exam with flashcards and multiple choice questions. Each question includes hints and explanations to help you understand key HR concepts. Prepare for your certification with confidence!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What can a pay structure in the workplace be principally based on?

Job evaluation
Market rates
How often work is done
A and B

The correct answer is: A and B

A pay structure in the workplace can principally be based on job evaluation and market rates. Job evaluation involves assessing the relative worth of jobs in an organization to determine appropriate compensation. This process helps to ensure internal equity, meaning that roles of similar value are compensated similarly. Market rates refer to the typical salary levels for specific roles within the industry or geographic area. By considering market rates, organizations ensure that their pay structures are competitive enough to attract and retain talent while also being aligned with industry standards. Both job evaluation and market rates are essential components when designing a comprehensive pay structure, which leads to the conclusion that a combination of these two factors is fundamental in establishing fair and equitable compensation practices in the workplace.