Question

Trevor, a researcher, believes that having higher labor costs than competitors is not necessarily bad. His colleague, Nick, supports Trevor's opinion by stating that employees must be paid according to the market rate. Which of the following strengthens their statements?

A. An organization may gain an advantage by paying above the market rate if it uses this method to attract top talent and uses employees' knowledge to be more innovative.

B. High pay will encourage an employee to work on holidays and produce higher quality goods in order to balance the labor expense with high productivity.

C. Employees can be forced to work long hours because they are paid higher than the market rate.

D. The work environment is friendly when employees are paid higher than the market rate.

E. Organizations can guarantee employee satisfaction if they increase employees' salaries above the market rate.

Answer

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