Market-based compensation utilizes salary survey data to evaluate an organization’s pay levels and can make them more, or less, competitive depending on the organization’s compensation philosophy—a framework within which compensation decisions are made.
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In conducting a market-based pay study, you’ll need to make decisions that directly reflect the organization’s compensation philosophy. For example, whether the organization will pay at, above, or below the market.
Read on here for more on market rate and comp philosophy.