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Companies can easily develop compensation

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When it comes to compensation, organizations have to find a way to differentiate between seniority, experience, knowledge, skills, and abilities, for any given job. If they did not, theoretically, everyone could be paid exactly the same as his/her colleague for a given position. As we know, not all jobs are created equal, but all jobs are vitally important in the functioning of the organizational structure. Hence, the reason for salary ranges and pay bands.

Do you believe that companies can easily develop compensation that is both internally consistent and competitive within the market? What are some of the challenges to this goal? Provide an example of an organization that you feel is competitive and consistent. Explain your choice.

Reference no: EM133337363

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