A fundamental rule of thumb in establishing base compensation is to pay new employees substantially more than what competitors in the labor market are paying.

Question

Quizplus · Accepted Answer

A fundamental rule of thumb in establishing base compensation is to offer competitive wages that align with or slightly exceed market rates, not to substantially overpay, as this could lead to unsustainable payroll costs and internal equity issues.

A Fundamental Rule of Thumb in Establishing Base Compensation Is