Internal And External Equity Comparison
When it comes to organizations and their compensation packages, they play a very important role when wanting to promote and attract new talents for the company. Every organization especially when wanting to be a successful business they acknowledge that employees have different needs and creating a compensation package allows the organization to make sure that they are able to have the right people working for them to continue to work and make the business grow. At the end of the day the organizations mentality revolves around low employee turnovers end up allowing a space of improvement when dealing with the employees and their productivity which at the end will end up being less cost for the organization.
Dealing with Internal equity as well as external equity, these are two very …show more content…
Pepsi creates a strategy for the whole organization that focuses on creating different reasonable pay packages focused on the different market wages as well as different compensations. By having an external equity, it has allowed Pepsi to do their job on having the right candidates and to continue to maintain their talents. During the years Pepsi has been successful when dealing with advertising as well as maintaining their talents and growing which is definitely an advantage for the company. For Pepsi, this compensation strategy has helped them in negotiating with their employees and make changes if needed. When being a Pepsi employee, if the employee was to request some sort of raise, the employee has the right to let the higher up know if there are other competitors that are offering the same pay. Based on external equity, there are disadvantages when dealing with this type of equity which does not keep the employees motivated and recognized for the job that they do as well as their job