Balanced Compensation: Key to Fairness in Developing Countries
A balanced approach to employee compensation, considering both market rates and job content, is optimal for fairness and competitiveness. This is particularly crucial in developing countries with evolving job markets.
Market pricing alone may not provide reliable data for unique or new positions in such markets. Instead, evaluating compensation based on job content - assessing each role's duties, skills, and organisational value - offers a more accurate measure.
Relying solely on market pricing can create internal equity issues due to inconsistencies in market data. It may also ignore local social and cultural contexts, risking unfair pay disparities. In a new company in a rural developing country, this approach might fail to account for intrinsic or community-based values. A more inclusive evaluation of compensation, reflecting local needs and sustainable development goals, would be more appropriate.
In a rural developing country, a balanced approach to employee compensation is key. It should consider stock market today rates while prioritising job-content-based evaluation to ensure fairness, reflect local contexts, and promote sustainable development.
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