An evaluation that compares the salaries for particular jobs offered on the external job market is called:

An evaluation that compares the salaries for particular jobs offered on the external job market is called:

• A. Internal Equity Review
• B. Benchmarking Analysis
• C. Market-Based Job Evaluation
• D. Job Value Assessment

Answer: (C)

Comparing what similar jobs pay in the external market to set compensation is market-based. This approach uses external pay data to determine the value and pay range for a job, helping the organization stay competitive for attracting and retaining talent. It’s a formal way to price a job according to outside benchmarks, rather than relying solely on internal structures. Internal Equity Review focuses on fairness among employees within the organization, not on external market rates. Benchmarking Analysis can involve external data but is broader and not always tied to a formal market-based value assessment for each specific job. Job Value Assessment emphasizes the internal worth of a job within the company and doesn’t center on external market comparisons.

Comparing what similar jobs pay in the external market to set compensation is market-based. This approach uses external pay data to determine the value and pay range for a job, helping the organization stay competitive for attracting and retaining talent. It’s a formal way to price a job according to outside benchmarks, rather than relying solely on internal structures.

Internal Equity Review focuses on fairness among employees within the organization, not on external market rates. Benchmarking Analysis can involve external data but is broader and not always tied to a formal market-based value assessment for each specific job. Job Value Assessment emphasizes the internal worth of a job within the company and doesn’t center on external market comparisons.