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Compensation - Pay Leader or Follower

Company executives, along with HR managers/compensation committees, must decide if their organization will be a pay leader or follower. Strategically, companies should be certain they are able to operate and still make a profit.

Think of a company that follows a lag policy and a company that follows a lead policy. Why do they believe it pays to pay differently? Can you think of any companies that follow performance driven and/or work/life balance policies? Explain your choices and be sure to provide supporting documentation to validate your response.. 200 words

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A company that uses a lead policy implements a payment strategy for their employees that exceed the standard pay rate within that field of work. The lead policy method is beneficial for an organization because it allows them to increase the amount of candidates for that job so they can select the best possible personnel. Employee turnover rates will decrease due to the compensation levels within that job field. An ...

Solution Summary

267 words compare lag and lead policies int he contexts of HR and profitability.

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