Explanation:
The market pricing system is an approach that differs from the formal salary structure because it is not an organizational process where the levels of remuneration are assigned according to a certain function.
In this wage definition strategy, the remuneration is calculated according to a present value, determined by the market itself and defined by conducting surveys whose objective is to analyze the service pricing strategies practiced by competitors.
This strategy can guarantee several significant advantages for an organization, such as increasing competitiveness by establishing a remuneration structure based on market value.
However, if this strategy is not duly reviewed periodically, what can happen is that there are flaws in the calculation of the current value, which generates an outdated salary system for employees and the company.
