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 than it does is using a ____ the market strategy.
A) lag
B) meet
C) lead
D) follow

Question

Quizplus · Accepted Answer

A "meet the market" strategy involves setting compensation levels that are competitive with the market average, meaning that the company aims to pay similarly to how other companies in the industry pay. In this scenario, being in the middle where half of the competitors pay more and half pay less is indicative of meeting the market.

A Company That Structures Its Compensation System So That Half