ABC Inc.is a very small firm.It has decided to pay its employees at rates that are similar to other small firms in its geographic area.What method of pay is ABC Inc.using?

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Market pricing involves setting pay rates based on the prevailing wage rates in the external market. In this case, ABC Inc. is using market pricing by setting its pay rates similar to other small firms in the same geographic area. Job evaluation involves assessing the value of each job within the organization, competency-based pay is based on an employee's skills and abilities, and geographic-based pay involves paying employees more or less based on the cost of living in their geographic location.

ABC IncIs a Very Small Firm