Internal equity requires that wage rates and salaries be reflective of what other employers are paying for the same type of work.

Question

Quizplus · Accepted Answer

Internal equity refers to the fairness and consistency of pay within an organization for similar jobs based on factors such as job duties, skills, and qualifications. External equity, on the other hand, takes into account what other employers are paying for similar jobs in the market. Therefore, the statement is false as internal equity is not based on what other employers are paying.

Internal Equity Requires That Wage Rates and Salaries Be Reflective