Answer:
External equity measures how a job's pay rate varies from company to company, while Internal equity measures a job's pay rate compared to other jobs within the same company.
Explanation:
1) Internal equity describes how fair the job's pay rate is in comparison to other similar positions within the same company. For Example, is the marketing manager's pay fair compared to what the production manager is earning?
2) External equity describes how a job's pay rate in one company compares to the job's pay rate in other companies. How is the CEO's pay is company XYZ compares with the CEO's pay in company ABC.
