Create an argument for or against the idea of Market Median pay as the basis for a compensation plan

Many employers use a market based pay philosophy to build and maintain their compensation programs. In other words, “the market”, which is other employers with similar positions and/or that are competing for job applicants/employee, influences internal pay structures.

Using your own employer (or one of your choosing) as an example,  create an argument for or against the idea of Market Median pay as the basis for a compensation plan.

Be sure to provide background information regarding jobs specific to the employer group and how those jobs are impacted by the local employment pool.