All of the following circumstances would indicate that an organization should examine how its pay system compares to compensation in its market EXCEPT:

The reason the first choice stands out is that satisfaction survey scores indicating high performers feel undervalued due to equal pay with other employees may signal internal issues rather than a need to adjust market competitiveness. High performers often seek recognition and rewards that distinguish them from their peers, and while their dissatisfaction points to a problem, it doesn’t necessarily indicate that the overall pay system is out of sync with the market.

In contrast, when new competitors enter the market, it often changes the landscape of compensation; organizations must reassess their pay systems to remain attractive. Similarly, rising employee turnover rates can suggest that employees are leaving for better compensation elsewhere, highlighting potential market pay issues. Lastly, concerns raised by long-term employees about their pay may indicate that pay rates haven’t kept up with market standards, necessitating a review of compensation practices. Each of these scenarios reflects a direct interaction with market pay practices, while the dissatisfaction of high performers primarily centers around internal equity rather than external market conditions.