Final answer:
The main answer to the question of what an organization should consider if a job evaluation identifies someone as being undercompensated is to provide that person with a wage increase. This approach is supported by the efficiency wage theory, as it enhances employee productivity and reduces turnover. It is more beneficial for a company than firing the employee or cutting their benefits.
Step-by-step explanation:
In the event that a job evaluation identifies someone who is being undercompensated, the organization might consider providing that person with a wage increase. This option aligns with the efficiency wage theory, which suggests that better-paid employees are more productive, motivated, and likely to stay with the company, as they recognize the value of their current compensation compared to the market. Moreover, avoiding wage cuts and instead providing fair compensation can minimize the employer's costs related to hiring and training new employees while benefiting from the enhanced motivation and productivity of well-compensated employees. The adverse selection of wage cuts argument further supports this, as reducing wages across the board could lead to the loss of the best talent, who may have better employment alternatives elsewhere.Firing the employee or eliminating their benefits are not effective strategies as they could lead to decreased morale and productivity, and potentially higher turnover rates, which are costly to the organization. Instead, increasing wages for undercompensated employees is a strategic measure that can lead to a more satisfied and stable workforce.