Asked by pizza and spagghetti on May 16, 2024

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What is a potential drawback associated with using compensation consultants to gather labour market information?

A) The data is usually not presented in a "user-friendly manner"; hence,it is difficult to use.
B) The data is usually old and not relevant.
C) The data may be restricted to client firms; hence,it does not necessarily comprise an appropriate sample.
D) The data tends to be more expensive compared to designing and administering your own survey.

Compensation Consultants

Specialists who advise organizations on their compensation strategies, including pay structures, benefits packages, and compliance with relevant laws and regulations.

Labour Market

The supply and demand for labor, where employers seek to hire workers and workers look for jobs, often analyzed regionally or nationally.

Appropriate Sample

Refers to a subset of a population selected for analysis or experimentation, which accurately represents the whole in the context of statistical study or research.

  • Recognize the sources and validity of compensation data, including the drawbacks of certain sources.
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Verified Answer

CA
Cassandra AbarcaMay 21, 2024
Final Answer :
C
Explanation :
Compensation consultants usually gather data from their client firms, which may not necessarily represent the entire labour market. This may result in a biased or incomplete sample, which can be a potential drawback associated with using compensation consultants to gather labour market information.