Explain and analyze the concept of external equity and the related compensation concepts that enhance a competitive compensation program. Analyze relevant research in external factors that influence pay and provide specific examples to support your findings.
Issues related to external factors
(I put several references in this response. If you want to use any one of them, please put the bibliographical reference at the end of the paper in a separate area, since this is APA format. I identified the items to be moved with a / -- just remove the slash and place the reference in alphabetical order in the references section.
The best reference on APA 6th edition format that I have found is this one:
External Equity is an important perception in the mind of an employee, because it is a measure of the value of the work of that employee in the eyes of management.
The Business Dictionary puts it this way - it is:
Employees' perception of the conditions and rewards of their employment, compared with those of the employees of other firms. (External Equity, 2014)
/"External Equity" (2014) Business Dictionary. WebFinance, Inc
However, this is not just a matter of what the employee thinks - the comparison is made with employees in similar positions in other companies. So the employee discovers through research what the general managerial consensus is of the value of her contribution to the business. This can help that employee to decide whether to remain in that company because of a comparatively good ...
This is an analysis of the concept of external equity and the related compensation concepts that enhance a competitive compensation program. Relevant research in external factors that influence pay are included along with specific examples.