Employer's Financial Impact on Employee Compensation Quiz
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Questions and Answers

Which factor can determine pay rates for employees?

  • The employee's qualifications
  • The employer's location
  • The employee's previous work experience
  • The employer's ability to pay (correct)

    • What happens if an employer cannot pay the employee what they can get elsewhere?

  • The employee will negotiate for a higher salary
  • The employee will work elsewhere (correct)
  • The employee will accept a lower salary
  • The employee will stay with the employer

    • What is the relationship between an employer's ability to pay and employee retention?

  • Higher ability to pay leads to higher employee retention
  • Higher ability to pay leads to lower employee retention
  • Lower ability to pay leads to higher employee retention (correct)
  • There is no relationship

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