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Two important factors in the determination of pay for any given position are the position’s pay in relation to the marketplace and the position’s pay relative to others within the organization. The first factor is known as external equity and the latter as internal equity. However, in many cases, external equity is used to determine the position’s pay when there is a different result that reflected by the two methods. This leads to a perception of unfairness when viewed from the internal equity perspective. The most notable situation concerns pay for women in many job categories. This arises because many jobs that are primarily held by women pay less than jobs primarily held by men. From an internal equity perspective, the jobs may be evaluated equally by the job evaluation system, but in the marketplace, the jobs in which women predominate are paid less. Organizations then face a dilemma—should the jobs be paid at the market rate or the internal rate?