Equity has to do with the perception that the organization’s compensation schedule and policies are fair. Fairness in pay is often assessed in term of its proportionality in the internal ranking of jobs (internal equity) and the comparability of the compensation schedule and policies relative to those of competing organizations (external equity). Research has demonstrated that employee reactions to perceived inequities in the compensation structure can influence decisions about accepting or rejecting job offers, whether to stay with an organization , or how hard to work at the job. Analyzing jobs and ordering them within the classification system is a systematic way of assigning more value, and hence more pay, to the jobs that are more highly value ensures the internal equity of the organization’s salary structure.