What would be some of the major reasons for conducting a compensation survey?© BrainMass Inc. brainmass.com October 2, 2020, 3:13 am ad1c9bdddf
Compensation surveys are important because they insure that a firm is paying its employees a fair wage. External consistency is important because it means that employees at the company that are doing the same job at similar companies are being paid similarly. If employees are undercompensated relative to competitors, the company will face resentment and a high turnover rate. The best employees will tend to move on leaving only those that can't find a better job elsewhere. If enough good employees go to the competitors, the human capital at the company will suffer and put the company at a ...
The solution describes the major reasons for conducting a compensation survey.