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Market Pricing - Conducting a Competitive Pay Analysis Questions and Answers

Question 1

What is one way market pricing supports an organization's business strategy?

Options:

A.

Provides key competitive information on how the organization's compensation levels compare to the market

B.

Achieves the goal that no employee should leave the organization due to pay issues

C.

Ensures that the organization will always lead the market regardless of financial resources

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Question 2

Choose the market position that matches the following description: The company's pay philosophy will stay ahead of the market the first half of the year, then fall behind the market.

Options:

A.

Lead

B.

Lead-lag

C.

Lag.

D.

Lag-Lead

Question 3

How do you measure the market for high-demand jobs?

Options:

A.

Focus on broadly defined job roles

B.

Focus on individual employees with specific skills

C.

Focus on internal value to the organization