Topic

External Equity and Internal Equity and Compensable Factors to Consider in Employee Equity

Instructions

Write a discussion External Equity and Internal Equity and Compensable Factors to Consider in Employee Equity

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Local governments also seek to determine the employers who are relevant when it comes to wage comparison looking at the size of the population. They also access the equalized assessed value (EAV) of the real property multiplying it by state equalization factor. This criterion allows the small local governments to seek other small local governments with similar features referencing points. Pynes (2013) notes that non- profit organizations should also look for comparable organizations, although it might be difficult since non- profit services evolve as a result of many forces.

Internal equity is a standard used by the employers for setting job wages in an organization corresponding to the relative internal value of the job. Pynes (2013) notes that, for this case, the employee positions getting higher wages are the most valued. Employees at high levels receive high compensation, unlike employees at low levels. However, the internal value of organizations’ positions is determined through following a job procedure that determines the relative value of one job relating to another. Among the job evaluation methods used includes ranking where the raters examine different job descriptions evaluating and arranging them in order according to the value that they add in the organization. However, this method suggests the existence of equal differences between jobs, which might be unlikely to happen. After ranking the jobs, the results are kept on different bases of comparison by the raters.

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