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.Which of the following would be an internal factor that would influence the setting of pay levels at All Season Fitness?

Question

Quizplus · Accepted Answer

Compensation policy, including the structure of base pay and incentive pay, is an internal factor that influences the setting of pay levels at All Season Fitness. The owner's decision to provide 90% base pay and 10% individual commissions is a reflection of this internal factor. The cost of living in Penticton, local union wages, and legal considerations are all external factors that may impact pay levels, but they are not specific to All Season Fitness's internal policies.