Asked by Grant Messenger on Jul 27, 2024
Verified
The most common approach to pay differentials is to move an employee lower in the pay structure to compensate for higher living costs.
Pay Differentials
Variations in pay for employees, often based on factors such as geographic location, job duties, industry standards, or skill levels.
Pay Structure
The systematic organization of pay rates within a company, defining compensation levels for different jobs or grades.
- Recognize the effects of pay differentials and geographical cost variations on compensation strategies.
Verified Answer
PL
Patricia LlanesJul 29, 2024
Final Answer :
False
Explanation :
The most common approach to pay differentials is to adjust pay levels based on factors such as experience, job responsibilities, and performance, rather than lowering someone's pay due to higher living costs.
Learning Objectives
- Recognize the effects of pay differentials and geographical cost variations on compensation strategies.