A disadvantage of using the pay-setting approach that groups jobs into a smaller number of pay grades is that:
A)it increases administrative burden.
B)it permits less flexibility in moving employees from job to job.
C)it results in some jobs being underpaid and others overpaid.
D)it increases costs of surveying the market.

Question

Quizplus · Accepted Answer

When jobs are grouped into a smaller number of pay grades, certain jobs may be overpaid or underpaid relative to other jobs within the same pay grade. This can lead to employee dissatisfaction and morale issues, potentially leading to turnover and difficulty attracting new talent. Additionally, it can be challenging to accurately group jobs into a limited number of pay grades, requiring thorough job analysis and market research, which can further increase administrative burden and costs.

A Disadvantage of Using the Pay-Setting Approach That Groups Jobs