UNIT TEST 5: REWARD & REMUNERATION

PART 1: VOCABULARY (QUESTION 1-100)

Choose the best answer (A, B, C, or D) to complete each sentence with the most appropriate word
or phrase.

Part 1 – Reward System Terminology C. Salary scale

D. Reward grid
Q1. The total pay and benefits an employee
receives for their work is called a ______. Q8. The specific level within a pay grade is
A. Remuneration package called a ______.
B. Work schedule A. Salary mark
C. Appraisal system B. Pay point
D. Training plan C. Grading step
D. Benchmark
Q2. All forms of financial return and tangible
benefits that employees receive are known as Q9. A periodic increase in salary within the
______. same grade is known as a ______.
A. Reward A. Salary uplift
B. Compensation B. Spinal point increase
C. Promotion C. Job upgrade
D. Motivation D. Reward increment
Q3. The system used by a company to Q10. A system that allows employees to
determine how employees are paid is called a choose from a range of benefits is called a
______ system. ______ plan.
A. Reward A. Flexi-pay
B. Payment B. Variable
C. Payroll C. Flexible benefits
D. Pay D. Voluntary pay
Q4. A company’s structured policy for Part 2 – Financial & Non-financial
rewarding performance and contribution is a Rewards
______. Q21. A regular payment made to an
A. Compensation policy employee, usually expressed annually, is
B. Reward strategy called a ______.
C. Salary scale A. Wage
D. Bonus plan B. Salary
Q5. When pay levels are linked to external C. Commission
market rates, the process is called ______. D. Bonus
A. Benchmarking
Q22. Money paid to employees in return for
B. Ranking their labour or services is called ______.
C. Evaluating A. Compensation
D. Balancing B. Allowance
Q6. The process of determining the relative C. Deduction
worth of jobs in an organisation is called D. Fund
______. Q23. An extra payment made for reaching a
A. Job matching specific target is known as a ______.
B. Job evaluation A. Benefit
C. Job rotation B. Bonus
D. Job analysis C. Subsidy
Q7. A structured hierarchy of pay levels or D. Premium
grades is known as a ______. Q24. A payment based on a percentage of
A. Pay band sales made by an employee is called ______.
B. Grade structure A. Wage
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B. Allowance A. Salary
C. Commission B. Pension
D. Incentive C. Bonus
D. Allowance
Q25. A lump-sum payment given at the end
of the year to reward loyalty or company Q33. Money paid to employees to cover
results is a ______. travel, meals, or other work expenses is an
A. Retention pay ______.
B. Loyalty bonus A. Allowance
C. Performance grant B. Incentive
D. End-year allowance C. Addition
D. Income
Q26. A share of profits distributed among
employees is known as ______. Q34. The right to receive future payment after
A. Share ownership retirement is a ______ benefit.
B. Profit sharing A. Pension
C. Stock option B. Equity
D. Equity plan C. Insurance
D. Security
Q27. A plan allowing employees to purchase
company shares at a reduced price is a Q35. The financial assistance provided to
______ scheme. employees for medical or family support is
A. Pension called ______.
B. Equity A. Health care
C. Share ownership B. Social benefit
D. Deferred pay C. Compensation
D. Well-being
Q28. The total income an employee earns
including base pay, bonuses, and benefits is Q36. A fixed extra payment added to a basic
called ______. salary for difficult working conditions is a
A. Gross earnings ______.
B. Total pay A. Performance bonus
C. Full remuneration B. Hardship allowance
D. Comprehensive wage C. Retention pay
D. Overtime fee
Q29. A financial reward that is not guaranteed
but depends on results is called ______ pay. Q37. The total financial and non-financial
A. Base rewards offered by an employer make up the
B. Variable ______.
C. Standard A. Compensation system
D. Stable B. Total reward
C. Employee value
Q30. A financial incentive offered to attract or
D. Motivation plan
retain staff is called a ______.
A. Benefit Q38. Rewards that recognise good
B. Premium performance without monetary value are
C. Incentive called ______ rewards.
D. Bonus A. Tangible
B. Symbolic
Q31. Benefits provided in addition to salary,
C. Non-financial
such as company cars or health insurance, are
D. Extrinsic
called ______.
A. Perks Q39. An opportunity for career growth,
B. Rewards recognition, or flexible working is an example
C. Privileges of a ______.
D. Extras A. Non-financial reward
B. Direct payment
Q32. A financial contribution paid by the
C. Wage incentive
company towards an employee’s retirement
D. Structural bonus
fund is a ______.
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Q40. A working arrangement that allows Q48. Providing clear information about pay
employees to adjust their hours to suit and benefits supports ______.
personal needs is called ______. A. Reward transparency
A. Time bonus B. Equity
B. Job sharing C. Motivation
C. Flexitime D. Compliance
D. Overtime Q49. A written document explaining pay
Part 3 – BelleBank Reward Strategy philosophy and practice is called the ______.
A. Reward brief
Q41. The organisation’s overall plan for
B. Reward policy
compensating employees is its ______.
C. Pay structure
A. Pay structure
D. Reward charter
B. Reward policy
C. Compensation scheme Q50. The regular process of checking whether
D. Reward strategy pay policies are effective is a ______ review.
A. Pay
Q42. At BelleBank, the reward system aims
B. Salary
to attract and retain ______.
C. Reward
A. Stakeholders
D. Remuneration
B. High-performing staff
C. Clients Q51. BelleBank ensures fairness by
D. Suppliers conducting periodic ______.
A. Job analysis
Q43. BelleBank’s reward policy links pay to
B. Pay audits
______.
C. Appraisals
A. Job title
D. Training reviews
B. Individual performance
C. Length of service Q52. When employees know how rewards are
D. Age decided, the organisation achieves ______.
A. Transparency
Q44. Regularly reviewing market pay levels
B. Parity
ensures ______.
C. Confidence
A. Consistency
D. Motivation
B. Motivation
C. External competitiveness Q53. A fair and consistent system of
D. Equality rewarding employees promotes ______.
A. Retention
Q45. The principle that pay reflects the job’s
B. Equity
value to the organisation is called ______.
C. Performance
A. Internal equity
D. Productivity
B. Fairness
C. Job evaluation Q54. A company statement committing to fair
D. Consistency pay between men and women is an ______
statement.
Q46. Employees at BelleBank receive both
A. Equality
basic salary and ______.
B. Diversity
A. Shares
C. Inclusion
B. Perks
D. Ethical
C. Performance bonuses
D. Allowances Q55. BelleBank encourages managers to link
pay reviews with ______.
Q47. The process of aligning pay with
A. Training plans
employee contribution is known as ______.
B. Performance appraisals
A. Reward communication
C. Job rotation
B. Performance-related pay
D. Succession planning
C. Equality assessment
D. Pay harmonisation Q56. The term “reward transparency” means
employees understand how ______.
A. Salaries are confidential
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B. Pay decisions are made A. Hybrid
C. HR policies are updated B. Combined
D. Benefits are taxed C. Mixed
D. Structured
Q57. An annual evaluation of pay
competitiveness is called a ______ review. Q65. The proportion of pay based on
A. Reward measurable output is called the ______
B. Pay element.
C. Market A. Bonus
D. Salary B. Variable
C. Fixed
Q58. A written summary of BelleBank’s
D. Commission
reward principles for staff is a ______
document. Q66. Incentives for teams based on group
A. Reward communication results are part of a ______ plan.
B. Reward framework A. Gain-sharing
C. Reward statement B. Group incentive
D. Policy notice C. Profit-sharing
D. Collective reward
Q59. The link between performance
outcomes and rewards is the ______. Q67. A document explaining performance
A. Reward strategy standards for each grade is a ______ guide.
B. Pay philosophy A. Job specification
C. Motivation link B. Performance standard
D. Performance-reward relationship C. Competence framework
D. Evaluation sheet
Q60. BelleBank recognises achievement
through pay, bonuses, and ______. Q68. Rewarding employees for long service
A. Job security is known as a ______.
B. Recognition awards A. Loyalty award
C. Mentorship B. Tenure bonus
D. Redeployment C. Long-service reward
D. Retention payment
Part 4 – Pay Systems, Performance &
Equality Q69. Pay levels that rise with seniority and
experience represent a ______ system.
Q61. A pay system in which employees earn
A. Graded
more for improving their skills is ______.
B. Incremental
A. Skill-based pay
C. Automatic
B. Graded pay
D. Hierarchical
C. Incremental pay
D. Performance pay Q70. A performance-related system where
targets are agreed jointly is ______.
Q62. A pay system linking rewards directly to
A. Appraisal-linked
individual results is ______.
B. Objective-based
A. Performance-related pay
C. Participative
B. Market-based pay
D. Transparent
C. Competence pay
D. Pay progression Q71. Adjusting pay to ensure fairness
between male and female employees supports
Q63. When pay depends on demonstrating
______.
required competences, it is called ______.
A. Pay fairness
A. Experience-based pay
B. Equal pay
B. Competence-related pay
C. Reward compliance
C. Skill-based
D. HR parity
D. Objective pay
Q72. Regular reviews to close the gender pay
Q64. A pay system that uses both fixed and
gap promote ______.
variable components is called a ______
A. Equality
system.
B. Diversity
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C. Remuneration C. Bonus
D. Parity D. Incentive
Q73. Pay differences that arise from Part 5 – Motivation, Satisfaction &
discrimination violate the principle of Communication
______. Q81. Rewards that increase employee
A. Reward strategy enthusiasm and loyalty are designed to
B. Equal pay enhance ______.
C. Legal compliance A. Motivation
D. Motivation B. Remuneration
Q74. A company’s obligation to pay C. Performance
employees fairly is based on ______ law. D. Loyalty
A. Employment Q82. The psychological satisfaction
B. Contract employees receive from doing meaningful
C. Equality work is called ______ reward.
D. Reward
A. Intrinsic
Q75. Monitoring whether reward systems B. Emotional
treat everyone fairly ensures ______. C. Non-financial
A. Transparency D. Internal
B. Pay equity Q83. Rewards such as pay and bonuses that
C. Ethical compliance come from outside the individual are known
D. Reward review as ______ rewards.
Q76. The process of checking salary A. Internal
consistency within the organisation is a B. Extrinsic
______ audit. C. Functional
A. Pay D. Tangible
B. Salary Q84. According to Herzberg’s theory, factors
C. Equity such as salary and working conditions are
D. Equality ______ factors.
Q77. Ensuring fairness and openness in pay A. Motivators
systems improves ______. B. Hygiene
A. Productivity C. Reward
B. Trust D. Security
C. Retention Q85. Opportunities for growth, recognition,
D. Engagement and achievement are examples of ______
Q78. A pay system where employees are factors.
rewarded for collective performance A. Extrinsic
encourages ______. B. Development
A. Individualism C. Motivational
B. Teamwork D. Incentive
C. Independence Q86. The process of giving employees a say
D. Competition in decisions that affect their work is called
Q79. Rewarding employees for reaching ______.
certain skill levels supports a ______ system. A. Empowerment
A. Competence-based B. Delegation
B. Skill-based C. Involvement
C. Role-based D. Participation
D. Merit-based Q87. When employees believe that their
Q80. Providing financial recognition for high rewards are fair compared with others, they
achievers is part of a ______ programme. experience ______.
A. Reward recognition A. Satisfaction
B. High-performance B. Motivation

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C. Equity B. Reward transparency
D. Parity C. HR policy
D. Equal pay
Q88. The link between reward and
performance is central to ______ theory. Q95. When communication about reward
A. Motivation systems is poor, employees may feel ______.
B. Expectancy A. Distrusted
C. Reward B. Confused
D. Equity C. Disconnected
D. Uninformed
Q89. Employees who feel undervalued or
unfairly rewarded may experience ______. Q96. A meeting where employees can ask
A. Disengagement questions about their pay and benefits is a
B. Dissatisfaction ______ meeting.
C. Conflict A. Reward review
D. Demotivation B. Consultation
C. Discussion
Q90. Regular feedback and praise from
D. HR talk
managers help increase employee ______.
A. Engagement Q97. Regular surveys to assess employee
B. Retention satisfaction with rewards are called ______
C. Awareness surveys.
D. Performance A. Feedback
B. Engagement
Q91. The process of ensuring that employees
C. Reward
understand the purpose of the reward system
D. Compensation
is ______.
A. Reward alignment Q98. The overall feeling employees have
B. Reward communication about their pay and recognition is called
C. Reward education ______.
D. Reward publication A. Job satisfaction
B. Reward perception
Q92. Providing employees with clear
C. Motivation
information about their pay and benefits
D. Employee value
ensures ______.
A. Transparency Q99. An organisation’s commitment to treat
B. Compliance employees with respect and value their
C. Equality contribution demonstrates ______.
D. Honesty A. Reward ethics
B. HR principles
Q93. Communicating pay policies openly to
C. Organisational culture
staff helps build ______.
D. People value
A. Confidence
B. Trust Q100. The ultimate goal of an effective
C. Engagement reward system is to achieve high levels of
D. Fairness ______.
A. Profitability
Q94. An organisation’s commitment to
B. Productivity
explain pay structure and fairness to
C. Employee engagement
employees reflects ______.
D. Satisfaction
A. Communication ethics

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PART 2: READING
Reading 1: Questions (101–104)
Choose the best answer (A, B, C, or D) for each question based on the information given in the text.

BENEFITS & REWARDS

We want to attract, motivate and hold on to our best personnel by rewarding you fairly with the
following benefits:
1. A first-class non-contributory retirement scheme (i.e., fully paid by the employer).
2. Coverage for your loved ones of four times your annual salary.
3. Free shares after one year’s service, dependent on company profits.
4. Fitness, sports facilities, massage, and yoga classes plus 20% off membership of a wide
selection of fitness clubs.
5. Daily nursery/kindergarten provision.
6. Counselling and advice on personal and domestic issues.
REMUNERATION PACKAGE
In return for your contribution to our organization, you can expect a role that offers considerable
variety and a chance to pursue your ambitions with the company both nationwide and
internationally.
7. Depending on level, role, and experience, we offer attractive salary packages to recruit and
retain the best personnel.
8. Payment is reviewed on a merit basis, based on how well you carry out your job.
9. You can adjust working hours to suit personal and family commitments.
10. Paid out twice a year dependent upon business results.
11. Hot meals, salads, and snacks at heavily subsidised prices.
12. Comprehensive moving expenses if you take up a new position or are transferred.

Q101. What is the main purpose of the "Benefits & Rewards" section?
A. To explain the rules for submitting annual reviews
B. To outline financial penalties for underperformance
C. To list the non-salary benefits offered to employees
D. To provide information about disciplinary procedures
Q102. Which benefit specifically supports employees with young children?
A. Free shares after one year
B. Daily nursery/kindergarten provision
C. Fitness and massage facilities
D. Counselling on personal issues
Q103. Which statement best describes how salaries are determined according to the
Remuneration Package?
A. Salaries increase automatically every year
B. Salaries are based on age and length of service only
C. Salaries are chosen randomly depending on business profit
D. Salaries depend on level, role, experience, and market competitiveness

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Q104. What does benefit number 9 in the Remuneration Package focus on?
A. Providing healthy meals at reduced prices
B. Allowing employees flexibility in working hours
C. Offering bonuses based on company performance
D. Covering employees’ relocation expenses

Reading 2: Questions (105–108)

Choose the best answer (A, B, C, or D) for each question based on the information given in the text.
A. VEHICLE INSPECTORS
Use your own car to look at the vehicles of prospective insurance customers and complete a simple
checklist. Pay according to how many inspections you carry out. Ideal candidate must have own car,
hold a full driving licence …
B. CUSTOMER SERVICE ASSISTANTS
We are currently seeking people with previous customer service experience, who can work flexible
shifts. The job involves dealing with our customers at the airport, giving advice, recommending
products, and offering travel tips …
C. NOW RECRUITING BUS DRIVERS…
Full-time vacancies available for PCV licence holders. You will benefit from 4 weeks’ paid holiday,
pension scheme, and free travel on bus and underground services …
D. HEAD OF PERSONNEL SERVICES
One of the oldest police forces in the country with ca. 2300 staff, with an excellent reputation for
performance, seeks an experienced HR professional to lead an HR team across the county …
E. ELECTRICIANS
Productivity bonus, 40 hours per week, vehicle supplied. Applications are invited from experienced
and qualified electricians to join our busy team. Please apply for a recruitment pack by phoning …
F. U.K. SALES MANAGER, ESSEX
Required to lead the U.K. sales force. At least five years’ successful experience in a similar post in
the food and beverage sector is a must. Excellent communication skills, a flair for business, and a
competitive spirit are essential …

Q105. What is the main purpose of the six job advertisements?

A. To explain different types of customer service training
B. To recruit employees for various positions
C. To compare salaries across different job roles
D. To describe how companies evaluate job performance
Q106. Which job specifically requires the candidate to use their own personal vehicle?
A. Electrician C. Vehicle inspector
B. Bus driver D. Sales manager
Q107. Which position is aimed at a highly experienced HR professional?
A. Customer Service Assistant C. Electrician
B. Head of Personnel Services D. Vehicle Inspector
Q108. Which job advertisement highlights extended benefits such as holidays, pension, and
free travel?
A. Bus drivers C. Electricians
B. Sales manager D. Customer service assistants
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Reading 3: Questions (109–112)
Choose the best answer (A, B, C, or D) for each question based on the information given in the text.
DISSATISFACTION OVER BENEFITS PACKAGES
Companies are wasting billions providing non-salary benefits, the value of which is not understood
by employees.
New research has revealed that many employees don’t appreciate their benefits or know their value
in monetary terms, despite the fact that 90% of employers believe such benefits are essential to both
attract and keep staff.
At a time of strong competition in the recruitment market, it’s essential that money is spent on relevant
benefits and that they are appreciated by the staff. There is a move towards more flexible benefits
where employees can choose their package, the report stated. A number of initiatives are currently
being piloted by companies.
One such company recently decided to introduce a new benefits package in stages and then issued all
staff with an employee benefits statement, so they could see exactly what they were getting. Now
they are running focus groups on the scheme, before introducing fully flexible benefits. These focus
groups allow staff and employers to examine the full extent of the benefits being offered, and to find
out which benefits have the most value to each individual and how they can best help the work/life
balance of today’s employees.
Is this being too democratic? As long as budgets are not exceeded, what could be better than to consult
with employees on what benefits they prefer? You could have a more contented and motivated
workforce at the end of the day.
Q109. What is the main problem highlighted in the passage?
A. Employers are reducing the number of benefits they offer.
B. Employees do not understand or value the benefits they receive.
C. Companies are removing salary-based benefits entirely.
D. Employees prefer higher salaries instead of any benefits.
Q110. Why are companies experimenting with flexible benefits packages?
A. To reduce the cost of traditional benefits.
B. To allow employees to choose benefits that suit their needs.
C. To avoid running focus groups with employees.
D. To replace monetary salaries completely.
Q111. What was the purpose of issuing an employee benefits statement?
A. To reduce employees’ complaints about salary levels.
B. To show employees exactly what benefits they were receiving.
C. To advertise new recruitment opportunities.
D. To prepare employees for a potential salary reduction.
Q112. What does the author suggest as a possible advantage of consulting employees about
benefits?
A. It guarantees that budgets will always be reduced.
B. It helps companies avoid competition in the job market.
C. It may lead to a more satisfied and motivated workforce.
D. It prevents employers from introducing new benefit schemes.

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Reading 4: Questions (113–120)
Choose the best answer (A, B, C, or D) for each question based on the information given in the text.
REWARDS AND BENEFITS
Rewards for work fall into two main groups.
The first, and in many opinions the most important, is that of direct or extrinsic rewards. These are
real, material rewards, and include basic pay (a guaranteed wage or salary paid by the hour, or on a
weekly or monthly basis), and performance-related pay, which is linked to how well an employee or
a group of employees works. This includes commissions — money paid to a salesperson or group of
salespeople which is usually a percentage of the sales made. Some companies also offer premium
bonus pay, usually given only to individual employees who work particularly well, or who make a
significant contribution to the company.
Production bonus, which is similar to this, is extra money paid to a group or company for increased
productivity, and is often offered in order to increase motivation; it is also sometimes known as an
incentive. If an employee takes less than the standard time to finish a task, they might receive a
gainsharing reward. Some employers also offer an attendance bonus for employees who are very
rarely absent from work. If an employer is particularly keen to recruit somebody, they might offer
them an acceptance bonus when they agree to join the organisation. Profit sharing, the practice of
dividing profits among the employees, is another reward which is often offered.
In addition to payment, other rewards may be offered. These include extras (known informally as
perks) such as a company car, insurance, free meals, pensions, option schemes, holidays, health
benefits, and duvet days (a new concept, especially common in the USA, in which an employee can
call their office and say they do not feel like coming to work even though they are not ill). Benefits
are usually fixed, which means that the employee is not able to choose what they get, but some
companies offer flexible benefits, where the employee can choose from a menu of benefits on offer.
Recognition plans, which offer employees increased rewards and benefits for good attendance,
behaviour and productivity, are becoming increasingly common.
The second group of rewards are intrinsic or psychological. These are non-material, and include status
(people enjoy being in an important position or a position of authority), job security, the opportunities
for personal development, the chance to learn a new skill, and career growth opportunities. Safety
and comradeship at work can also be included in this group, and for most employees, satisfaction
(being with a group of people you like and get on with) is also a very important reward.
Q113. What is the main idea of the passage?
A. How companies select and promote employees
B. The different types of rewards employees may receive at work
C. Why employees prefer non-financial incentives
D. Ways to reduce the cost of employee compensation
Q114. Which of the following is an example of a direct or extrinsic reward?
A. Job security C. Performance-related pay
B. Comradeship D. Career development
Q115. What is the purpose of a production bonus?
A. To reward workers for rarely taking sick leave
B. To increase productivity within a team or company
C. To encourage employees to work flexible hours
D. To support employees taking on new job roles
Q116. Why might an employer offer an acceptance bonus?
A. To encourage a candidate to join the organisation
B. To motivate employees to finish a task quickly
C. To reward long-term loyalty
D. To reduce absenteeism
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Q117. Which statement best describes flexible benefits?
A. The company decides all benefits without employee input
B. Employees can select from a range of benefit options
C. Benefits are based on performance and sales results
D. Employees receive the same benefits each month
Q118. What is the difference between extrinsic and intrinsic rewards?
A. Extrinsic rewards are informal, intrinsic rewards are financial
B. Extrinsic rewards are material, intrinsic rewards are psychological
C. Extrinsic rewards are optional, intrinsic rewards are compulsory
D. Extrinsic rewards focus on teamwork, intrinsic rewards focus on competition
Q119. Which of the following is mentioned as a non-material reward?
A. Pension plan C. Status
B. Performance bonus D. Insurance
Q120. What is the meaning of “duvet days” in the passage?
A. Paid holidays taken only in winter
B. Days when employees must work from home
C. Extra days off given for good performance
D. Days employees may take off simply because they don’t feel like working

Reading 5: Questions (121–120)

Choose the best answer (A, B, C, or D) for each question based on the information given in the text.
Rewards Focus Group Summary
The focus group recognised that HR was a well organised and well managed department and that
this could be seen in the efficiency of the payroll system. People felt that the company healthcare
provision, which also covered family members, was excellent, along with leisure cards for access to
swimming pools and gyms. The focus group also saw that the company was doing a lot to extend
indirect benefits as well as making the company an enjoyable place to work.
The majority of the group see the training programme, including language training, as a perk.
However, everyone agreed that the current PRP (performance-related pay) system was terrible and
that the bonus scheme was particularly unfair. On average, only 5% of people actually receive a
bonus and therefore it demotivates 95% of employees. Everybody wants the bonus scheme to be
ended.
Q121. What is the main purpose of the focus group summary?
A. To describe HR’s recruitment process
B. To present feedback on the company’s reward system
C. To propose new financial incentives
D. To compare benefit systems across industries
Q122. Which benefit was considered excellent by employees?
A. Housing support C. Healthcare provision
B. Travel reimbursements D. Free lunches
Q123. What was the group’s opinion about the current PRP (performance-related pay)?
A. It motivates staff effectively C. It is terrible and demotivating
B. It is fair but needs improvement D. It rewards the majority of employees
Q124. Why is the bonus scheme viewed as unfair?
A. It is based on performance reviews
B. Only a small percentage of employees receive a bonus

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 C. It requires long working hours
D. It is only available to senior managers

Reading 6: Questions (125–132)

Choose the best answer (A, B, C, or D) for each question based on the information given in the text.
BelleBank – Reward Strategy Overview
Introduction
The strategy has been developed through employee consultation. It takes into account corporate
objectives of profitability and the desire to foster innovation.
Reward strategy statement
The aim of the strategy is to set out the aims and objectives of the pay and rewards system, the criteria
upon which it has been developed, and how the system will be administered. The company will be
taking a total reward approach, which incorporates all aspects of reward.
Basic pay criteria
Basic pay levels have been established through research and reference to industry norms. Belle Bank
will seek to improve its position in the wages benchmarking table through increased profitability.
Grading
Over the next year, the current grading system will be simplified. The number of grades will be
reduced, as will the number of spinal points between grades. The company will operate a single spinal
column system, with all rates being published on the intranet.
Additional payments
Additional payments will be made to employees who work on national holidays in order to
accommodate international clients. Overtime, shift working and special duties will also attract
additional pay.
Additional benefits
All employees will receive additional benefits in the form of healthcare and sports club membership.
Additionally, some staff will be entitled to a company car, laptop and mobile phone.
Non-financial elements
BelleBank will also seek to develop non-financial rewards in the form of options for home working,
flexible benefits and preferred office space.
Attraction and retention additions
BelleBank reserves the right to offer additional incentives to attract hard-to-recruit workers or retain
employees in areas where there is a skill shortage. This will be in the form of a lump sum or loyalty
bonus.
Performance pay and incentives
The company has decided to discontinue the current performance pay system and is currently
investigating an alternative with an employee share option and profit share scheme.
Equality statement
The company will make every effort to ensure that the reward system does not discriminate against
any group of employees, and will carry out annual equality audits.

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Q125. What is the main purpose of BelleBank’s reward strategy?
A. To reduce staff benefits and bonuses
B. To outline how pay and rewards will be structured and administered
C. To encourage employees to work longer hours
D. To replace managers with automated systems
Q126. How were the basic pay levels established?
A. Through employee voting
B. Through reference to industry norms and research
C. By copying competitors directly
D. Based on employees’ personal requests
Q127. What major change will be made to the grading system?
A. Grades will be increased to allow more promotion
B. Grades will be removed completely
C. Grades and spinal points will be reduced and simplified
D. Only senior managers will be graded
Q128. Which employees will receive additional payments?
A. Employees working from home
B. All employees regardless of duties
C. Employees working on national holidays or special duties
D. Only employees in managerial positions
Q129. Which of the following is listed as an additional benefit?
A. Annual cash prizes
B. Free accommodation
C. Healthcare and sports club membership
D. Unlimited paid leave
Q130. What non-financial rewards will BelleBank develop?
A. Extra holiday bonuses
B. Opportunities for international travel
C. Home working options and preferred office spaces
D. Free meals during working hours
Q131. Why might BelleBank offer lump-sum or loyalty bonuses?
A. To reward employees who work overtime
B. To attract and retain employees in areas with skill shortages
C. To reduce the cost of recruitment advertising
D. To replace annual salary increases
Q132. What alternative is BelleBank exploring to replace the current performance pay
system?
A. A fixed pay freeze
B. A seniority-based pay system
C. An employee share option and profit share scheme
D. A bonus system based on customer surveys

THE END

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