Which of the Following Statements About Pay Equity as a Compensation

Multiple Choice

Which of the following statements about pay equity as a compensation policy is true?

A) It is rarely used because the cost of eliminating pay inequities runs about 20 to 25% of annual payroll.
B) Eliminating pay inequities requires cutting the pay of some white male employees.
C) Unions are adamantly opposed to pay equity policies.
D) If a company has adhered to external market pay levels, it has automatically adjusted for pay inequities.
E) Employees should perceive that they are paid fairly compared to others in the same organization given the contributions that they and others make to the organization.