Explore BrainMass

Explore BrainMass

    Factors that Affect a Firm's Pay Policy

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Define pay policy. Which competitive pay policy would you recommend to an employer? Why? Does it depend on circumstances faced by the employer? If so, which ones?

    If you have a citation please include. Thanks.

    © BrainMass Inc. brainmass.com June 4, 2020, 4:57 am ad1c9bdddf

    Solution Preview

    Pay policy refers to a company's decision to pay above, below, or at market rate for its jobs. The pay policy helps recruit, retain, and motivate employees. In addition, the pay policy of a firm provides the basis for sound financial and employee planning. The pay policy sets out the framework for making decisions on employees' pay(1). The pay policy has the purpose of recruiting a standard of employees, supporting their recruitment/retention/reward system, and ensuring objectivity in compensation decisions. ...

    Solution Summary

    The answer to this problem explains the factors that affect a firm's pay policy. The references related to the answer are also included.