A company that structures its compensation system so that half of its competitors pay their employees more than it does and half of its competitors pay less, is using a _______________ the market strategy.
A)lag
B)meet
C)lead
D)follow

Question

Quizplus · Accepted Answer

This is known as a meet the market strategy, where the company aims to pay its employees at the same level as its competitors. It is a balanced approach that helps the company attract and retain talent while maintaining its competitiveness in the market. The other options, such as lagging the market or following the market, may result in the company losing out on top talent or overpaying for its workforce. Leading the market strategy may work for some companies, but it can be risky if the market shifts or if the company cannot sustain its high compensation levels.

A Company That Structures Its Compensation System So That Half