Internal and external pay equity should both be carefully considered and reviewed when determining… 1 answer below »
Internal and external pay equity should both be carefully considered and reviewed when determining the relative worth of a job from not only inside of the organization, but also from similar jobs in other organizations. Taking into account the internal and external pay equity is significant in implementing a proper compensation system as creating fairness within an organization is larger than just direct compensation. For example, an environment where employees feel that they are being compensated unfairly will almost certainly result in a lower morale and poor quality work. “Internal equity exists when employees in an organization
