To determine a fair rate of employee compensation, most firms rely upon which of the following tools to establish external equity?
A) job grading
B) wage and salary surveys
C) point system
D) job ranking
E) job analysis

Question

Quizplus · Accepted Answer

Wage and salary surveys allow firms to gather information on industry pay standards and adjust their compensation accordingly for external equity. Job grading, point systems, and job ranking are methods for establishing internal equity. Job analysis is a method for determining the skills and responsibilities needed for a specific job.

To Determine a Fair Rate of Employee Compensation, Most Firms