Question

The _______________________ used external pay data to identify the relative value of jobs based on what other employers pay for similar jobs. a. factor-comparison method b. ranking method c. point factor method d. market pricing method

Answer 1

Answer:

The correct answer is letter "D": market pricing method.

Explanation:

The market pricing method for calculating wages levels collects information from other companies with similar operations, geographical areas, and job positions to compare them with the data of the business so an average salary can be determined for its employees. With this analysis, institutions remain competitive when it comes to salaries or can decide to provide workers higher-than-market salaries to attract qualified personnel.

Companies should evaluate the wages market every two (2) to three (3) years to find out if conditions have changed.