Compensation @ Amway Quiz

The Global Grade is defined by:

Pay ranges are set in such a way that pay can be differentiated based on experience, expertise and performance.

• Pay ranges are based on market data.
• Every pay-range has a Minimum, Mid-point and Maximum defined.
• Pay ranges are set in such a way that pay can be differentiated based on experience, expertise and performance. This range spread allows to manage employee pay based on performance –with high performers' pay progressing toward the high end of the range and solid performers' pay managed around the middle of the range.
• Pay Ranges are monitored on a regular basis. With the annual merit increase cycle, the individual pay position is reviewed and can be adjusted according to the merit award process and definition. Pay ranges of different GGs may overlap, however the position of the midpoint increases from grade to grade

What is the cut-off date for merit award eligibility?

• Employees must be hired on or before 30th September to become merit eligible

• Compa-ratio indicates the employee’s pay position on the pay range.
• It is the ratio of employee’s salary to the midpoint of the pay range for a given grade.
• Pay at midpoint of the range has a compa-ratio of 100%. Pay that is 10% above midpoint, has a compa-ratio of 110%. Pay 10% below midpoint has a compa-ratio of 90%
• Pay Ranges and consequently Compa-ratio are adjusted according to the respective FTE count. Ex.: If an employee, is 0.5 FTE, Midpoint of the pay-range will be divided by half.

The Final Objective score has impact on:

• Amway’s incentive programs reward employees for company financial performance and individual performance based on his/her objectives.

What qualifies a position for a promotion?

• Promotion depends on business need and functional requirements.

An employee joined the company on October 1st. Which of the following statements is correct?

Plan bonus payout occurs in _____ of the following year according to local payroll schedule.

• Plan payout occurs in March of the following year according to local payroll schedule.

Please choose all components of ACIP bonus payout:

• Basis Amount for Payout: For 2017, the basis for ACIP payout is an employee’s (prorated) annualized base pay as of 12/31.
• An employee’s annual incentive target is payout amount based on a percentage of their annual base salary of the plan year and his/her job grade.
• The company performance multiplier is determined by comparing actual company performance to the preset threshold, target and maximum performance levels. The company performance multiplier can be any value between 50 percent – 200 percent, or it can be zero percent if the company fails to meet threshold performance.
• Individual performance multiplier is determined by ranking the employee’s performance score on objectives against the scores of other employees during the calibration process.

The merit increase that an employee gets depends on? Please choose all components.

• Employee’s annual year’s Competency Score. Higher the score typically higher the merit increase.
• Second parameter that impacts the merit increase % is placement in the pay-range (Compa-Ratio) which means that an employee who is paid towards the lower end of the pay-range gets a higher increase and vice-versa.
• Also depends on the affiliate’s merit increase budget.

Employee was on the leave of absence from January 1st until November 1st. Which of the following statements is correct?

Lump Sum is a one-time payment that is recommended for employees whose salary is near to or at the midpoint of the pay range.

• Lump sum is applicable for the employees who are paid high in the pay-range.

The merit matrix is designed to assure our employees receive market-competitive pay based on an _______ on ________. Please choose two correct replies?

• In alignment with Amway’s pay for performance philosophy, merit program supports performance differentiation through the use of a merit matrix. The merit matrix is designed to assure our employees receive market-competitive pay based on an employee’s performance on individual competencies.