Value of Total Rewards

External Competitiveness & Internal Equity in an Effective Compensation Program

The ability to create a successful market-based compensation program is contingent on a number of key variables. Yet none is more important than gaining a clear understanding of what it takes to have a compensation program that is externally competitive, while at the same time internally equitable.

In this assignment:

  1. Discuss what is meant by a market-based compensation program.
  2. Explain how an organization can balance external competitiveness with internal equity to achieve a successful market-based compensation program. Be specific.
  3. Illustrate with actual examples of employers achieving this balance. Also, provide examples of organizations failing to achieve one or both and illustrate what might result.

Bring in at least 5 library sources to help strengthen and support your discussion.

Paper length: 4-5 pages, not counting the cover and reference pages.


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