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Pay grades limit the ability to achieve competitive advantages

Pay grades limit a company's ability to achieve competitive advantages. Do you agree?

Provide rationale for your position.

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Question: Pay grades limit a company ability to achieve competitive advantage. Do you agree? Provide rationale for your position.

I agree with the statement that pay grades could affect a company's ability to achieve competitive advantage in its industry because compensation strategies influence a company's ability to achieve its desired organizational performance. My support for the statement is based on the notion that employees are a company's most valued asset hence if employees perceive that their pay is relatively low in comparison to counterparts in other organizations, it potentially could lead to retention and recruitment issues which invariable impacts competitive advantage in the industry. Kleiman and Taylor (2010) posit that to become externally competitive in today's business environment, ...

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How the pay grades limit a company's ability to achieve competitive advantages is determined.

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