When employers are developing structures for internal compensation for their employees, it is important that they determine the way it wants their rates to compare relative to the existing markets. For instance, they could match, lead, or lag the market depending on their financial standing and performance expectations (Paul & Elder, 2012, pg. 347). Alternatively, they could employ a combination of the three options to match their performance needs.
Benefits of Leading the Market in Overall Compensation and Benefits
The strategy of leading the market entails paying rates that are in excess of what is prevailing in the marketplace. The benefits that accompany this strategy include an increase in the ...