Which of the following statements about pay equity as a compensation policy is true?
A) It is rarely used because the cost of eliminating pay inequities runs about 20 to 25% of annual payroll.
B) Eliminating pay inequities requires cutting the pay of some white male employees.
C) Unions are adamantly opposed to pay equity policies.
D) If a company has adhered to external market pay levels, it has automatically adjusted for pay inequities.
E) Employees should perceive that they are paid fairly compared to others in the same organization given the contributions that they and others make to the organization.

Question

Quizplus · Accepted Answer

Pay equity means that employees should be paid fairly compared to others in the same organization given the contributions that they and others make to the organization. It is not rarely used, does not require cutting the pay of some white male employees, and unions are not necessarily opposed to it. Adhering to external market pay levels does not automatically adjust for pay inequities.

Which of the Following Statements About Pay Equity as a Compensation