Human Resources Certification Institute (HRCI) Practice Exam

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An employer who seeks to pay all employees within the 50th percentile of the labor market is using what type of compensation strategy?

Quartile
Entitlement
Performance
Equity

The correct answer is: Quartile

An employer who seeks to pay all employees within the 50th percentile of the labor market is using a compensation strategy known as quartile. This means that the employer is aiming to pay their employees at a similar level to the middle 50% of the market, rather than using a different approach such as basing pay on performance or seniority. Entitlement and equity are also types of compensation strategies, but they are not based on the comparison to the labor market. Performance is also important in determining pay, but it is not the primary factor in this particular strategy.