Final answer:
The second step in establishing pay rates is a) conducting wage/salary surveys to collect data on market compensation levels.
Step-by-step explanation:
Step 2 in Establishing Pay Rates
When establishing pay rates, Step 2 of the process is a) Conducting wage/salary surveys. This involves collecting data on compensation levels for jobs in the market.
This data includes information such as the annual salary or hourly wage received by employees in equivalent positions.
Employers gather this information through surveys, interviews, and observations to make informed decisions about competitive compensation levels.
It’s important to understand the demand and supply analysis of labor markets, as this affects pay rates.
Employers often analyze factors like the number of workers in the market and the number of hours they work, which influences the establishment of competitive pay rates.