Asked by Shayan Patel on Jul 16, 2024
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ABC Inc.is a very small firm.It has decided to pay its employees at rates that are similar to other small firms in its geographic area.What method of pay is ABC Inc.using?
A) job evaluation
B) market pricing
C) competency-based pay
D) geographic-based pay
Geographic-Based Pay
A compensation strategy that adjusts an employee's pay based on the cost of living and market wage rates in the geographic location where they work.
Market Pricing
The process of determining the external value of jobs within an organization by comparing the organization's jobs to similar jobs in the external labor market.
Small Firms
Businesses or enterprises with a small number of employees, potentially offering more personalized services and having less market influence than larger companies.
- Recognize methods of establishing base pay.
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Learning Objectives
- Recognize methods of establishing base pay.
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