Which of the following statements is true? A) An employee’s past expe

QUESTION

Which of the following statements is true?

A) An employee’s past experience has no effect on his or her base pay.
B) In most industries, the value of benefits is higher than the base pay.
C) The ratio of base pay, benefits, and incentives in compensation is standard across all industries.
D) Base pay is driven in part by competitors’ compensation packages.
E) All businesses include incentive-based compensation in employee compensation.

ANSWER

Answer: D
Explanation: D) Base pay is determined by checking what competitors are paying in a specific location, as well as prevailing industry pay levels, whether jobs are unionized, whether jobs are hazardous, and employees’ rank and experience.