Homelife,a national chain of high-end furniture stores,employs nearly 800 workers.In the past few years,the company's market share has dropped significantly,and employee turnover has increased.Upper management is considering the implementation of a new compensation policy in its efforts to turn the company around.Historically,the company has paid all employees similarly with some variation for seniority but no distinction between high and low performers.
-Which of the following,if true,supports the argument that Homelife executives should primarily address internal equity issues when developing a new compensation plan?

Question

Homelife,a national chain of high-end furniture stores,employs nearly 800 workers.In the past few years,the company's market share has dropped significantly,and employee turnover has increased.Upper management is considering the implementation of a new compensation policy in its efforts to turn the company around.Historically,the company has paid all employees similarly with some variation for seniority but no distinction between high and low performers. 
-Which of the following,if true,supports the argument that Homelife executives should primarily address internal equity issues when developing a new compensation plan?

Quizplus · Accepted Answer

Salary surveys indicating dissatisfaction among managers in different departments suggest that there may be internal equity issues within the company. This implies that some employees may be paid more than others for similar work or that there may be disagreements about fair compensation levels between different departments. Addressing these equity issues would be an important consideration when developing a new compensation plan. The other answer choices do not directly support the argument for addressing internal equity issues.

Homelife,a National Chain of High-End Furniture Stores,employs Nearly 800 Workers