Question

What might be one reason that an organization might choose to pay someone more than is suggested by a job evaluation?

A) if there is a threat of a lawsuit
B) when people are unwilling to take a job unless it is well compensated
C) when workers have a family and will need the additional income
D) when it is easy to find someone to take that position

Answer 1

An organization might pay someone more than a job evaluation suggests to ensure employees are willing to take the job, to increase their productivity, and to minimize turnover, according to efficiency wage theory.

Step-by-step explanation:

One reason an organization might choose to pay someone more than is suggested by a job evaluation is when people are unwilling to take a job unless it is well compensated (Option B).

According to efficiency wage theory, an employer may pay more to increase worker productivity and loyalty, as employees who are paid better than market rates are more likely to work harder and stay with the company.

Additionally, this can help minimize costs associated with hiring and training new employees.