Compensation program
External Competitiveness & Internal Equity in an Effective Compensation Program
The ability to create a successful market-based compensation program is contingent on a number of key variables. Yet none is more important than gaining a clear understanding of what it takes to have a compensation program that is externally competitive, while at the same time internally equitable.
In this assignment:
Discuss what is meant by a market-based compensation program.
Explain how an organization can balance external competitiveness with internal equity to achieve a successful market-based compensation program. Be specific.
Illustrate with actual examples of employers achieving this balance. Also, provide examples of organizations failing to achieve one or both and illustrate what might result.
Bring in at least 5 library sources to help strengthen and support your discussion.
Paper length: 4-pages not counting the cover and reference pages.
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External Competitiveness & Internal Equity in an Effective Compensation Program
Market-based compensation program
Most companies today are adopting the external payment determination system (The United States, 2005). The market-based compensation program involves the evaluation of the company’s pay rates with other companies to determine if they are offering competitive pay for their employees. The reason for the deployment of market-based compensation includes flexibility and shorter affiliations of staff and employers………………………….
APA
1259 words