When average salaries are targeted at the average salary levels of employees in comparable positions in our various labor markets, the market compensation policy is being used.

Question

Quizplus · Accepted Answer

Market compensation policy involves setting salaries at levels that are competitive with other employers in the same labor market who are looking to hire for similar positions. This means targeting average salary levels for comparable positions in that market.

When Average Salaries Are Targeted at the Average Salary Levels