There are many contextual influences that must be taken into account when designing and implementing direct financial compensation plans, and one of them is interindustry wage or compensation differentials. Briefly, state the implications of these differentials for establishing competitive compensation programs. Then, explain the factors that contribute to the existence of interindustry wage differentials.

There are many contextual influences that must be taken into account when designing and implementing direct financial compensation plans, and one of them is interindustry wage or compensation differentials. Briefly, state the implications of these differentials for establishing competitive compensation programs. Then, explain the factors that contribute to the existence of interindustry wage differentials.