As a human resource specialist, you have been asked by your organization to provide recommendations on which base pay method to use, given that the human resources department has very limited human capital and financial resources. Which of the following methods would be on top of your list of recommendations?
A) job evaluation
B) person-based pay
C) competency-based pay
D) market pricing

Question

Quizplus · Accepted Answer

Market pricing is the most cost-effective base pay method as it involves analyzing the prevailing wage rates in the market for similar jobs and adjusting the pay accordingly. It also reduces the need for extensive job analysis and evaluation and can be easily executed with limited resources. Person-based and competency-based pay methods require additional resources for assessments and evaluations, while job evaluation is a time-consuming and complex process that may require expertise or additional training.

As a Human Resource Specialist, You Have Been Asked by Your