A ________ pay system involves setting pay rates based on a comparison between internal pay and external pay.
A) ranking
B) salary survey
C) market-competitive
D) compensable factor

Question

Quizplus · Accepted Answer

With a market-competitive pay system, the employer's actual pay rates are competitive with those in the relevant labor market, as well as equitable internally. The basic approach is to compare what the employer is currently paying for each job ("internal pay") with what the market is paying for the same or similar job ("external pay"), and then to combine this information to produce a market-competitive pay system.

A ________ Pay System Involves Setting Pay Rates Based on a Comparison