Certified Human Resource Professional (CHRP) Practice Exam

What is the defining feature of a split pay range?

1. It blends base pay with variable pay to define total pay

2. Progression through the range is based on seniority and performance

3. Employees earn different rates of pay when performing multiple jobs

4. It occurs within a broadbanding structure

The correct answer is: Progression through the range is based on seniority and performance

The defining feature of a split pay range refers specifically to how pay progression is determined. In this structure, employees' advancement in pay is influenced by both seniority and performance metrics. This means that as employees gain experience and demonstrate their value through their performance, they can move up within the pay range, which is distinctly segmented into different levels or bands for progression. This approach allows organizations to recognize and reward the contributions of their employees over time while also motivating them to enhance their performance. Consequently, differentiating progression based on these two factors supports talent management and retention by incentivizing both longevity and excellence in job performance. This method is quite distinct from blending or combining base and variable pay, which deals more with the composition of an employee's total compensation rather than how pay progression is structured. Similarly, although employees performing multiple roles may earn different rates of pay, this scenario does not specifically define a split pay range since it does not solely focus on the progression of existing roles based on tenure and performance. The notion of broadbanding is also unrelated as it emphasizes integrating multiple pay grades into broader bands, rather than focusing on progression characteristics within a defined pay range.