Most firms base compensation decision on five factors. One of the factors is:

Question

BlackTom AI · Accepted Answer

When evaluating how firms determine compensation, it's useful to parse what each option implies about the factors involved.
Option 1: What competing companies are paying. This aligns with the common practice of market pricing or external equity, where organizations benchmark pay against competitors to attract and retain talent. It reflects the external market rate as a key factor in setting compensation.
Option 2: Employee's severance package. A severance package is typically a contingent, post-employment consideration rather than a regular compensation decision factor used to determine ongoing pay. It concerns potential obligations if employment ends, not the standard wage or salary decisions.
Option 3: The cost of on-site training. While training costs matter for budgeting and total rewards planning, they do not usually serve as one of the primary factors used to set base pay or incentive levels. They’re more about development expenditure than directly shaping compensation levels.
Option 4: Company's benefit package. Although benefits are a component of total compensation, the traditional five-factor framework often emphasizes cash compensation and market position rather than treating benefits as a separate core factor. Benefits are part of the overall package, but the question targets the primary factors used to set compensation levels, where market comparison (Option 1) is the distinguishing external factor.
In summary, among the listed choices, comparing pay to what competing companies are offering best captures the external benchmark principle typically emphasized in compensation decision processes.

MGM101H5 F LEC0101 Quiz #5

Most firms base compensation decision on five factors. One of the factors is:

查看解析

登录即可查看完整答案

类似问题

When deciding on differences in pay, which employee is most likely to receive more pay for doing the same job?

Profit sharing involves awarding pay:

The increase in compensation had the biggest impact on

Which of the following statements about the number of hours worked by employees are true? (Select all the apply.)

Employees in the same job may have different pay rates based on performance, seniority, and training.

In the case “Tipping Point at Union Square Hospitality Group (USHG),” what was the primary reason the company reversed its no-tipping policy?

The Bonus plans, Profit-sharing plans, Stock-option plans, offered to employees is part of a company's ____________ .

Salaries are remuneration paid to employees based on:

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单