Final answer:
Resolving conflicts between market pay surveys and job evaluation can be challenging. Organizations need to decide whether to adjust pay to align with the market benchmark. Supplementary job evaluations or offering non-monetary incentives can help address these conflicts.
Step-by-step explanation:
Resolving conflicts between market pay surveys and job evaluation can be challenging. One common conflict arises when market pay surveys indicate that certain positions should be paid more than what the job evaluation suggests. In this case, the organization needs to decide whether to adjust the pay for those positions to align with the market benchmark or to maintain internal equity by sticking to the job evaluation results.
For example, let's say a market pay survey suggests that software engineers should be paid $100,000 per year, but the job evaluation indicates that their position is at a lower pay grade. Resolving this conflict requires considering various factors such as the organization's financial resources, its compensation philosophy, and its overall compensation strategy.
In some cases, organizations may choose to conduct a supplementary job evaluation to reassess the position's value and determine if a pay adjustment is warranted. Alternatively, they may decide to provide additional non-monetary incentives, such as bonuses or career development opportunities, to address the gap between market pay and job evaluation.