Homelife,a national chain of high-end furniture stores,employs nearly 800 workers.In the past few years,the company's market share has dropped significantly,and employee turnover has increased.Upper management is considering the implementation of a new compensation policy in its efforts to turn the company around.Historically,the company has paid all employees similarly with some variation for seniority but no distinction between high and low performers.
-Which of the following,if true,supports the argument that Homelife should distribute salary surveys before establishing new pay rates?

Question

Homelife,a national chain of high-end furniture stores,employs nearly 800 workers.In the past few years,the company's market share has dropped significantly,and employee turnover has increased.Upper management is considering the implementation of a new compensation policy in its efforts to turn the company around.Historically,the company has paid all employees similarly with some variation for seniority but no distinction between high and low performers. 
-Which of the following,if true,supports the argument that Homelife should distribute salary surveys before establishing new pay rates?

Quizplus · Accepted Answer

If Homelife executives want to identify benchmark jobs before determining the worth of other jobs, it shows that they are interested in comparing their compensation policies with other companies in the same industry. This will give them a fair idea of what the market is paying for similar job roles. Conducting salary surveys will help the company in identifying these benchmarks and establishing new pay rates. Thus, A is the best choice.

Option B talks about using compensable factors emphasized by the Equal Pay Act, but it does not provide any information about the need for conducting salary surveys. Option C talks about using computerized job evaluation systems to generate questionnaires, which can be a part of conducting salary surveys, but it does not provide enough information to support the argument. Option D talks about the need to establish a wage curve for federal compliance, but it does not explain why salary surveys are needed. Option E talks about only store managers being classified as professional, which is irrelevant to the argument about conducting salary surveys.

Homelife,a National Chain of High-End Furniture Stores,employs Nearly 800 Workers