Market-based pay systems focus on:

Question

Quizplus · Accepted Answer

Market-based pay systems focus on external equity, which means setting pay levels based on what other employers pay for similar jobs in the same industry or labor market. This helps ensure that the organization remains competitive in attracting and retaining talented employees. Complex internal job evaluations and traditional pay ranges may be used in conjunction with market data, but they are not the primary focus of market-based pay systems. Psychological contracts are not directly related to pay systems.

Market-Based Pay Systems Focus On