Asked by Guadalupe Gomes Torres on Jul 16, 2024
Verified
Pay levels are limited in part by profitability of the firm and market pay.
Pay Levels
The range of compensation provided to employees, typically categorized into bands or grades based on job roles, responsibilities, and market benchmarks.
Profitability
A measure of the efficiency and financial success of a business, indicated by the amount of profit generated relative to revenue and expenses.
Market Pay
The average amount of compensation given to employees within a specific job market, industry, or geographic area.
- Identify the factors influencing wage levels and pay structures, including market conditions and profitability.
Verified Answer
JE
Justin EnemuoJul 23, 2024
Final Answer :
True
Explanation :
Pay levels are influenced by the profitability of the firm, as more profitable companies can afford to pay higher wages, and by market pay rates, which represent the going rate for specific jobs in the labor market.
Learning Objectives
- Identify the factors influencing wage levels and pay structures, including market conditions and profitability.