When designing a base pay system,it must be both internally equitable and competitive with the external labor market.

Question

Quizplus · Accepted Answer

A base pay system needs to strike a balance between internal equity (i.e. fair pay for employees in similar roles within the same organization) and external competitiveness (i.e. pay that is competitive with what other organizations in the same industry are offering for similar roles). This helps ensure that the organization can attract and retain talented employees while also maintaining fairness and equity within the organization.

When Designing a Base Pay System,it Must Be Both Internally