An employer using the first-quartile strategy chooses to "lag the market."

Question

Quizplus · Accepted Answer

The first-quartile strategy involves setting compensation levels at or below the 25th percentile of the market, which means the employer is intentionally choosing to pay employees less than what similar companies are paying for similar roles. This strategy is also known as "lagging the market" and aims to control costs while still remaining competitive for talent.

An Employer Using the First-Quartile Strategy Chooses to "Lag the Market