Definition of Market-Based Approach to Pay

A system in which an employee's compensation is determined by comparing their wages to those of employees in similar positions in the labor market, rather than relying solely on internal salary structures or job evaluations. This approach takes into account the external pressures of supply and demand for particular skills, as well as the employer's ability to pay, when determining salaries.

Example: The company uses a market-based approach to pay because it allows the company to adapt to local market changes as needed.

Variations: market-based approach to compensation, market-based compensation, market-based pay

Usage of "Market-Based Approach to Pay" by Country

Business English is used in many different countries around the world. Some of the words and phrases listed on this site will be understood everywhere Business English is used, but some words and phrases are only used in specific countries. The map below shows where "Market-Based Approach to Pay" is most commonly used.

Word Usage Map

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"Market-Based Approach to Pay" is in the top 30% most popular words looked up on this site.

"Market-Based Approach to Pay" is used in the workplace during meetings or emails.

The definition for "Market-Based Approach to Pay" was last updated in 2023.

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Business English Quiz

Question: What does "Calendar Invite" mean?

   (A) When a person wants to meet with you next week.
   (B) An email sent to schedule a meeting with the option to either accept or decline the meeting at the scheduled time.
   (C) When a person has available time on their calendar to meet with you.
   (D) When a person does not have any time to meet with you.

Answer: Find out the right answer here.

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Jargonism is a Business English dictionary. You can learn about words and phrases that are commonly used in the workplace like Circle Back, Thought Leader, and Offsite. We also have a Word of the Day, which is a daily Business English vocabulary word that is commonly used in the workplace.

On this site, we also have templates on how to communicate effectively at work, such as requesting PTO, declining a promotion, and taking a sick day.

Word of the Day

Date: 07/17/2024

Word: Close It Out

Definition: To mark something as completed.

Example: This task has been fixed, so let's close it out within the task tracker.

Cite This Page

"Market-Based Approach to Pay." Dictionary, Accessed 07/17/2024.