Asked by Michael Petropulos on May 10, 2024
Verified
A "lead-the-market" compensation policy should be deployed only in situations when organizations face very tight labour markets.
Lead-The-Market
A compensation strategy where an organization aims to provide pay rates that are more competitive than the average industry or sector rates to attract and retain top talent.
Compensation Policy
Guidelines and principles that an organization follows to determine how employees are compensated, including salary, benefits, bonuses, and other types of pay.
Labour Markets
The supply and demand for labour, where employees provide the labour and employers provide the jobs, influenced by various economic factors.
- Understand the attributes of labor markets and their impact on hiring methods, taking into account the effects of constrained and relaxed markets.
- Investigate compensation tactics within the framework of market placement, including approaches that either precede, equate with, or follow after the market.
Verified Answer
Learning Objectives
- Understand the attributes of labor markets and their impact on hiring methods, taking into account the effects of constrained and relaxed markets.
- Investigate compensation tactics within the framework of market placement, including approaches that either precede, equate with, or follow after the market.
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