Which pay-setting approach places the highest relative emphasis on external comparisons?
A)Basing pay on market surveys that cover as many key jobs as possible.
B)Deriving pay rates for all jobs based on the number of job evaluation points.
C)Grouping jobs into a smaller number of pay grades.
D)Basing pay on skills employees have acquired.

Question

Quizplus · Accepted Answer

Basing pay on market surveys that cover as many key jobs as possible places the highest relative emphasis on external comparisons, as it relies heavily on comparing the pay rates for specific jobs with external pay rates for similar jobs in the market. This approach often dictates pay rates for an organization in relation to other organizations in the same market or industry.

Which Pay-Setting Approach Places the Highest Relative Emphasis on External