Worldatwork Exam CECP Topic 4 Question 64 Discussion

Actual exam question for Worldatwork's CECP exam

Question #: 64
Topic #: 4

[All CECP Questions]

Why are lump-sum increases generally used?

ATo control annual fixed costs from base pay adjustments

BTo elevate employees who are below the midpoint in the range

CTo reward employees under short-term incentive plans

DTo make up for benefits not provided by the organization

Show Suggested Answer

Suggested Answer: A

by Kimberely at Jul 18, 2024, 05:27 AM

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Viola

4 months ago

Wait, so are we talking about lump-sum increases or lump-sum deposits? I'm getting my financial terms mixed up here. Someone call an accountant!

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Roselle

4 months ago

Hmm, I'm not too keen on making up for benefits that should be provided. Option D sounds a bit like a bandaid solution to me.

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Hoa

4 months ago

Rewards for short-term incentives? Count me in! Option C gets my vote. Who doesn't love a little bonus now and then?

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Deandrea

4 months ago

Option A makes the most sense to me. Controlling those pesky fixed costs is key, especially with the way inflation is these days.

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Alyce

3 months ago

Yes, it's a delicate balance but necessary for the overall success of the organization.

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Tamesha

3 months ago

Lump-sum increases can be a strategic way to balance cost control and employee recognition.

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Aretha

3 months ago

It's important to find ways to manage costs while still rewarding employees for their hard work.

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Vonda

3 months ago

I agree, controlling fixed costs is crucial for the organization's financial stability.

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Shelia

4 months ago

A lump-sum increase? I'd rather get a raise that sticks around, not just a one-time boost. Option B seems like the way to go.

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Yolando

3 months ago

Yeah, option B makes more sense for long-term motivation.

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Caitlin

4 months ago

I agree, a raise that sticks around is definitely more appealing.

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Maryanne

4 months ago

I think it's a combination of both, controlling costs and rewarding employees.

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Felicia

5 months ago

I believe lump-sum increases are also used to reward employees under short-term incentive plans.

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Ronnie

5 months ago

I agree with Helga, it helps in managing costs effectively.

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Helga

5 months ago

I think lump-sum increases are used to control fixed costs.

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