Internal And External Equity Comparison Essay
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 important factors that revolve around the organization and can affect the compensation plan. Internal equity revolves itself around being able to compensate the organizations employees in different but still alike positions having some sort of similar changes. When internal equity is put into action it only tends to be used when the employees believe that they have been rewarded fairly based on the performance that they have presented with the organization. Employees should be acknowledge and viewed on their work performances and should be compensated based on how they tend to perform on their job title. In order for there to be an internal…