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Pay Structure Changes Based on Job Market ConditionsThe student case study was:
Describe the relationship between pay structure change and market conditions. Discuss the major issues and sub-issues that influence the employee's pay.
Two market conditions explored in this solution include the economy and job market. When unemployment is high, organizations have a plethora of job candidates to select from. This may result in a lowering of the typical pay structure as jobs are in high demand. The reverse is true when unemployment is low; organizations must compete with each other for the top talent. The economy also impacts pay structures; by how much organizations can spend on compensation. In difficult times, organizations may opt to grant increases to their top performers; wanting to secure the top achievers. This solution provides several examples of how organizations adapt pay to job market conditions.
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