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Riordan External and Internal Equity

In: Business and Management

Submitted By serrano52
Words 312
Pages 2
Riordan Internal and External Equity Equity internal alignment is also called the existing relationship between the payment and the different labor positions, skills, and competence within the organization (Milckovich & Newman. 2008). Internal equity describes the comparison of wages paid to the employee performing at the same level or degree within the Riordan organization.
Moreover, the External Equity compares wages in the market competition, Riordan Manufacturing play where to employ and retain similar types of employees. It is based in Riordan's compensation system and pay structures. Riordan manufacturing work towards an equitable payment to the internal and external, which makes it attractive to retain and keep good employees.
The implementation of structural job, payments system, analysis, and business structures, which help to identify and define the labor content describing the duties and internal assignations to endorse equal compensation (Martocchio, 2009).
Additionally, external equality elements to identify market competition include, marketing surveys, researching new and current competitors marketplaces will help to maintain the company update in pay, and trends. Implementing internal and external equity Riordan will continue to be a successful organization.
A wage management process and rationale
The purpose behind Riordan program wages, is to get consistency in payment practices, supplemented by laws and regulations, especially with the commitment to equal employment opportunity and maintain a competitive salary (Virtual Organization, 2012). The labor compensation as described above is based on factors such as labor analysis, evaluations, job content, and market research and payment practices within the same industry.
The Merit-pay system is best suited to labor excellence, and the system of compensation and administrative programs…...

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