External Competitiveness & Internal Equity in an Effective Compensation Program

External Competitiveness & Internal Equity in an Effective Compensation Program The ability to create a successful market-based compensation program is contingent on a number of key variables. Yet none is more important than gaining a clear understanding of what it takes to have a compensation program that is externally competitive, while at the same time internally equitable. Discuss what is meant by a market-based compensation program. Explain how an organization can balance external competitiveness with internal equity to achieve a successful market-based compensation program. Be specific. Illustrate with actual examples of employers achieving this balance. provide examples of organizations failing to achieve one or both and illustrate what might result.