Expensify, which was described in the opening case study to this chapter, has an unusual process for determining pay rates. Twice yearly, employees do a paired comparison of employees. Each person’s skill and contribution is documented and that information is ranked against the skill and contribution of every other employee. Most employees participate in this process even though it takes many hours to complete. Expensify’s pay rate calculation practice relates to which of the four financial reward practices discussed in this chapter? What are the potential advantages of this process? What problems might occur by using this method to determine individual pay?

AppendixLO1