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WorldatWork T3 Exam Syllabus Topics:

SectionWeightObjectives
Application to Compensation Design30%- Quantitative Decision Making
  • 1. Evaluating compensation program costs
    • 2. Modeling variable pay and incentives
      - Market Data Analysis
      • 1. Aging and adjusting survey data
        • 2. Calculating market benchmarks
          - Pay Structure Development
          • 1. Grade progression and overlap
            • 2. Compa-ratio and range penetration
              • 3. Midpoints, ranges, and spread
                Descriptive Statistics25%- Measures of Variability
                • 1. Range, interquartile range
                  • 2. Z-scores and percentiles
                    • 3. Variance and standard deviation
                      - Distribution Shapes
                      • 1. Skewness and kurtosis
                        • 2. Normal distribution
                          - Measures of Central Tendency
                          • 1. Mean, median, mode
                            • 2. Weighted averages
                              Foundations of Quantitative Analysis20%- Data Collection & Presentation
                              • 1. Populations vs samples
                                • 2. Graphical representation of data
                                  • 3. Frequency distributions
                                    - Mathematics for Compensation
                                    • 1. Time value of money
                                      • 2. Percentages, ratios, and proportions
                                        • 3. Compound growth and annuities
                                          Inferential & Predictive Statistics25%- Regression Analysis
                                          • 1. Multiple regression concepts
                                            • 2. Using regression for market pricing
                                              • 3. Simple linear regression
                                                - Probability & Sampling
                                                • 1. Basic probability rules
                                                  • 2. Sampling methods and error
                                                    - Correlation Analysis
                                                    • 1. Linear correlation coefficients
                                                      • 2. Interpretation of correlation strength

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