Which of the following is a drawback of setting pay rates based strictly on a pay policy line?
A) It increases the administrative burden of managing the compensation system.
B) Employees have difficulty interpreting regression analysis.
C) The estimated pay for a job may not reflect conditions in the labor market.
D) It increases the costs of surveying the market.
E) It groups jobs,which will result in rates of pay for individual jobs that precisely match the levels specified by the market.

Question

Quizplus · Accepted Answer

The estimated pay for a job may not reflect conditions in the labor market, which can lead to difficulty attracting and retaining employees. It is important to consider external factors such as the current state of the economy and the competition for talent when setting pay rates.

Which of the Following Is a Drawback of Setting Pay