Factors external to the organisation may affect the pay strategies used in an organisation.For example, increases in mortgage rates and increases to the costs of goods and services may affect how much employers pay their employees.This is an example of:

Question

Quizplus · Accepted Answer

The increase in mortgage rates and costs of goods and services are factors related to the cost of living. External factors such as inflation and changes in the economy can affect the cost of living, which in turn can affect how much employers pay their employees. Therefore, the correct choice is C, cost of living.

Factors External to the Organisation May Affect the Pay Strategies