Pay ranges:
A) are flexible enough to deal with differences in quality, but not with the productivity or value of these quality variations.
B) usually lead to an increase in employee turnover.
C) reflect the differences in performance or experience that an employer wishes to recognize with pay.
D) cause employees to believe that their compensation can increase by only a limited amount.

Question

Quizplus · Accepted Answer

Pay ranges are designed to reflect differences in performance or experience, and recognize these with pay. They may not be flexible enough to deal with productivity or value changes, and they may give employees the impression that their compensation is limited. However, there is no evidence to suggest that pay ranges lead to increased turnover.

Pay Ranges