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PART 2
Fair and adequate compensation is critical for attracting the most qualified employees and retaining and motivating staff. When determining compensation, consideration should be given to fair and equitable compensation among all workers in the same company (internal equity) and fair and equitable compensation relative to the external market (external equity).Consider the following scenario:
You have two medical assistants (MAs) who earn $15 per hour at your medical practice. When you hire a new MA, you discover that the current market pays $16 per hour for medical assistants.
Respond to the following discussion points in relation to equity conflicts and compensation:
State what you would offer the new MA and provide your reasons.
Discuss the implications of your decisions on internal and external equity.
Evaluate the changes, if any, you would make in the compensation of your current MAs.
Recommend strategies for resolving similar equity conflicts with compensation.
Go to the website of a professional accounting body of your choice. Prepare a 3-5 page report that outlines the steps this accounting body has taken so far to facilitate adoption of IFRS/IAS.
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