What process involves determining wage rates based on various market factors and job value?

The process of determining wage rates based on various market factors and job value is best described by the concept of wage mix. This involves evaluating and establishing compensation levels by considering both internal and external factors that affect pay. By analyzing the wage mix, organizations aim to strike a balance between competitive rates in the labor market and internal equity amongst employees.

Factors influencing the wage mix include market demand for specific job roles, the skill level required for the positions, industry standards, and the organization's overall compensation strategy. This approach helps ensure that employees are compensated fairly relative to their responsibilities and contributions, while also aligning with what competitors are offering for similar positions.

In contrast, salary benchmarking focuses specifically on comparing salaries to ascertain whether an organization's pay structure is competitive. Cost analysis relates to evaluating expenses associated with compensation and may not directly determine wage rates based on market value. Market pay review typically involves a broader assessment of pay structures and may not be as targeted as the wage mix approach.