Labor market forces, including supply and demand dynamics for labor, skill levels, and unemployment rates, directly influence organizational pay and benefits strategies. For instance, in a situation where there is high demand for skilled labor but a low supply, organizations might find themselves increasing wages and offering enhanced benefits to attract the necessary workforce. This approach reflects a strategic response to labor market conditions, underscoring the necessity for organizations to adapt their compensation practices to remain competitive. Knight (2014) suggests practical strategies such as conducting pay surveys and focusing on external equity to develop competitive compensation packages. Pay surveys provide valuable benchmarks against which organizations can assess their compensation levels, ensuring they are attractive in the current labor market. Similarly, product market forces, characterized by market competition levels and economic conditions, necessitate strategic compensation decisions. Noe (2022) highlights how the cost of labor influences product pricing and, by extension, an organization's competitiveness. For example, companies in highly competitive markets may offer better compensation packages to attract and retain the talent that contributes to innovation and service quality, enhancing their market position. In the automotive industry, the direct reflection of labor costs in the pricing of vehicles illustrates how product market competition impo