Scenario 7.1 All Season Fitness
Ryan works for a small sports equipment and clothing retail store located in the southern interior of BC,All Season Fitness.He just learned that one of his coworkers,who works full time,started one year after he had started at the company is being paid 20% more than he is.He has worked for All Season Fitness for three years part-time while attending Okanagan College business program.Ryan's base pay is minimum wage.The owner of All Season Fitness compensation includes 90 % base pay and 10% individual commissions.The owner believes that rewards and recognition programs play a key role in retaining a good workforce particularly in the sports retail environment,where many of his employees make minimum wage.He provides his student employees flexible work hours and an annual school tuition scholarship of $1000.
-Please refer to Scenario 7.1.What would be an external factor that would influence the setting of pay levels at All Season Fitness?

Question

Quizplus · Accepted Answer

Labour market conditions, such as supply and demand of workers in the area, can greatly influence the setting of pay levels at All Season Fitness. If there is a shortage of workers, the owner may need to offer higher wages to attract and retain employees. Conversely, if there is a surplus of workers, the owner may be able to offer lower wages and still find suitable candidates.