As the owner of a medium-sized engineering consulting firm,you choose to have different pay-level policies for your engineers,managers,and support staff. Which type of compensation policy have you adopted?
A) Lead
B) Match
C) Hybrid
D) Lag

Question

Quizplus · Accepted Answer

The adoption of different pay-level policies for engineers, managers, and support staff suggests that the firm is following a hybrid compensation policy which combines elements of both lead and lag compensation policies. Lead policy offers higher compensation to attract and retain high-performing employees while lag policy pays lower than industry standards to keep labor costs low. Match policy maintains pay parity with the industry. However, the given scenario does not suggest a singular policy. Instead, the firm seems to have adopted a combination of policies, paying engineers higher than support staff, but lower than managers. Hence, a hybrid policy is the best choice.

As the Owner of a Medium-Sized Engineering Consulting Firm,you Choose