External Competitiveness and Pay Policies

According to a recent article by Roy Maurer, workers are quitting their jobs in record numbers and it demonstrates employers need to up their game with respect to clear communication, compensation and hiring the right employees for the job. (Maurer, 2018). The research is divided as to the biggest motivator for jumping ship, some surveys cite money as the main reason while others attribute it to promotion opportunities, career changes, or bad managers. According to Abigial Hess, a strong employment market offers a unique opportunity for workers, especially those who earn more than $100,000 a year, a 15% pay raise (Hess, 2018).

So, how do companies keep high potential employees?  How do companies keep any employee for that matter? By conducting market surveys, analyzing pay data relative to key positions, determining what pay makes the best sense for the employee and the company. Companies develop an internal pay scale that meets the needs of both employees and the company. In essence, a pay scale that is fair and equitable to both.

In this Discussion you will consider external competitiveness, competitive pay policies and the use of compensation surveys and pay discrimination. In addition, you will justify the use of pay policies within the budgeting process. 

• Define the concept of external competitiveness.
• Describe two competitive pay policies you would recommend for a company.
• Illustrate how these competitive pay policies link to organizational success.
• Illustrate the link between compensation surveys and pay discrimination.
• How would a compensation professional account for pay policies within the budgeting process?