Employees' Conclusions About Equity Depend on

question 54

Multiple Choice

Employees' conclusions about equity depend on

• A) what they choose as a standard of comparison.
• B) how much money they think the company CEO makes.
• C) what level of income they believe they should be at by this point in their lives.
• D) what benefits they receive.
• E) if they think they can bargain for a higher rate of pay.

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Definitions:

Red Circle Rates

Pay rates that are higher than the typical range for a job or position, often given to retain employees with critical skills or experience.

Piece Rate

A payment method where workers are compensated based on the amount of work completed or products produced, rather than receiving a fixed hourly wage.

Wage Compression

A situation where differences in wages among employees in an organization become minimized, often due to external wage pressures or internal pay equity initiatives.

External Equity

The perception of fairness in compensation when comparing one's salary and benefits to those in similar positions in other organizations.