BUS681 Week 3 DQ1 Building Blocks

Discuss the basic building blocks of developing a market competitive pay system, including the relationship between internal and external equity.

According to Martocchio (2017), Market-competitive pay systems represent companies compensation policies that fit the imperatives of competitive advantage Compensation professionals build market-competitive compensation systems based on the results of compensation surveys (chapter 7.1). In other words, market-competitive pay systems utilize compensation to provide an advantage over competition within their marketed industry. For example, in the internet technology industry it is not uncommon to see compensation packages used to attract and retain top talent. High salaries and generous work/life...