Asked by Delaney Knottnerus on Sep 23, 2024
Verified
Which of the following statements about pay equity as a compensation policy is true?
A) It is rarely used because the cost of eliminating pay inequities runs about 20 to 25% of annual payroll.
B) Eliminating pay inequities requires cutting the pay of some white male employees.
C) Unions are adamantly opposed to pay equity policies.
D) If a company has adhered to external market pay levels, it has automatically adjusted for pay inequities.
E) Employees should perceive that they are paid fairly compared to others in the same organization given the contributions that they and others make to the organization.
Pay Equity
The practice of compensating employees equally for jobs requiring comparable skills, responsibilities, and effort, regardless of gender or other irrelevant factors.
Compensation Policy
A set of guidelines that an organization follows to determine how employees will be compensated, including salaries, benefits, and bonuses.
Pay Inequities
Situations where there is an unfair or unequal distribution of pay among employees, often due to discrimination based on gender, race, or other factors.
- Scrutinize the basic concepts of salary fairness and equivalent worth in the work environment.
Verified Answer
MF
Maria Fernanda Navarroabout 18 hours ago
Final Answer :
E
Explanation :
Pay equity means that employees should be paid fairly compared to others in the same organization given the contributions that they and others make to the organization. It is not rarely used, does not require cutting the pay of some white male employees, and unions are not necessarily opposed to it. Adhering to external market pay levels does not automatically adjust for pay inequities.
Learning Objectives
- Scrutinize the basic concepts of salary fairness and equivalent worth in the work environment.