C8 Business Acumen for Compensation Professional Questions and Answers

Operational excellence

Product/service leadership

Customer intimacy

Brand loyalty

Focus on negative issues first, such as compensation costs exceeding budget, to get their attention

Provide a wide range of facts and figures. With their high level of responsibility, executives must have all the data before they can make informed decisions.

Assume they have little knowledge of the issue and make a detailed presentation leading up to the purpose of the meeting.

Recommend a solution that will solve the issue and explain why it is the best solution available.

By using cash from other segments of the business

By using its high credit rating from prior years to receive a line of credit until the strategy begins to work

By selling its products and services at a loss until revenue increases and slowly raising prices until it begins to break even

By identifying and duplicating the strategy used by its main competitor.

Business forecasting

Business analytics

Predictive modeling

Statistical analysis

It is a precise estimate of what the future holds for the organization.

It is done primarily by using historical revenue and expense data.

It is done primarily by evaluating market conditions and economic indicators.

It uses internal and external factors to help answer questions about business expectations for the future.

Compensation budgets only because staffing cannot exceed the funds available

A combination of organizational goals and budget realities

The consensus of HR management and line management estimates

The opinions of senior leaders in the organization

Whether to improve productivity, obtain new operating capital or generate new sales growth

Whether to reinvest in existing products, create new products or maximize profits with current products as long as possible

Whether to acquire competitors with greater market share or merge with more successful companies

Whether to increase sales, maximize distribution capacity or increase efficiency to meet growing demand

Production worker

Account executive

IT contractor

HR Director