Pay rates must be equitable for each employee relative to other pay rates inside the organization.This is known as

Question

Quizplus · Accepted Answer

Internal equity refers to the idea that employees should be compensated equitably in relation to one another within an organization. This means that employees who perform similar jobs should receive similar pay, based on factors such as experience, education, and job responsibilities. A compensation plan is a strategy for determining pay rates and other forms of compensation within an organization, but it is not the specific concept of equitable pay relative to other employees in the organization. External equity refers to the idea that an organization's pay rates should be competitive with those of other organizations in the same industry or labor market, which is not the focus of the question. Wage compensation is a general term describing the pay and benefits an employee receives for their work, but it does not specifically address equitable pay within an organization. Thus, option B is the correct choice.

Pay Rates Must Be Equitable for Each Employee Relative to Other