When employees and outsiders consider an organization's compensation as lacking in external equity, what is a likely outcome?
A)lower than average turnover
B)employees discussing their pay with other employees
C)little effect on employee morale because internal equity is most important to employees
D)difficulty recruiting qualified and high-demand employees

Question

Quizplus · Accepted Answer

When employees and outsiders perceive an organization's compensation to be lacking in external equity, it becomes difficult to recruit qualified and high-demand employees as they tend to seek organizations that offer better compensation packages. This can lead to the company struggling to attract top talent and losing out to competitors.

When Employees and Outsiders Consider an Organization's Compensation as Lacking