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What is a relevant market in compensation

16/10/2021 Client: muhammad11 Deadline: 2 Day

reply to the students' response and not the question in 150 words minimum and provide 1 reference. Respond to the students response as though you are talking to them, use name

question

You are a compensation analyst for a pharmaceuticals company, which is located in Los Angeles, California. Define the scope of the relevant labor markets for chemists and for data entry clerks. Describe the rationale for your definitions

student answer

Relevant labor market is defined our textbook (p. 151) as “the fields of potentially qualified candidates for particular jobs.” These markets are determined based off the geography, competitors, and occupational classification. Compensation surveys are widely used by many companies. The relevant labor market for chemists would be the entire states of California and the relevant market for data entry clerks would be those in the city of Los Angeles. When looking at the two different positions we can also analyze the differences between the two. The data entry clerk position has a lot more openings but also pays less than chemists. From this we can conclude that there is a higher turnover rate in the data entry positions so we can expect that the company will be continuously recruiting for this position. The chemist job will require a higher level of skills and require licenses and a degree. With this type of positions, we can expect the salary to increase.

There are many different pharmaceutical companies within the labor marker. At the same time, there are a lot of competitors in the market so management will have to focus on an effective compensation plan. When looking at the data entry position, management will look for those with at least a high school diploma and some computer experience as well as their typing skills. Regardless, these people will end up leaving for a better position once they have built their experience. As stated in an article by Resource Management, Inc., a fair compensation plan will help to retain talent and encourage employees to increase their performance.

https://rmi-solutions.com/fair-employee-compensation-how-it-benefits-your-employees-and-your-company/

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