If unemployment is high and it is easy to find replacement workers, which philosophy of compensation might an organization chose?
A)Pay for performance
B)Pay for longevity
C)Above-market pay
D)At-market pay
E)Below-market pay

Question

Quizplus · Accepted Answer

When unemployment is high and replacement workers are easy to find, an organization may choose to offer below-market pay to its employees. This is because the organization knows that there are many people looking for work and it does not need to offer high salaries to attract and retain employees. Additionally, by offering lower pay, the organization can reduce its labor costs and remain competitive in the market.

If Unemployment Is High and It Is Easy to Find