XYZ Inc.pursues a low-cost strategy in its industry and generally needs lower skilled employees.As a result,their management team decided to establish a compensation policy that pays less than the marketplace.In recent years,the company became susceptible to labor shortages and high turnover.Which kind of pay level policy does XYZ Inc.follow?
A)market match
B)market lag
C)market lead
D)market pay line

Question

Quizplus · Accepted Answer

XYZ Inc. follows a market lag pay level policy, where they pay less than the marketplace to pursue their low-cost strategy. This has resulted in labor shortages and high turnover, which indicates that their pay level policy is not competitive enough to retain employees.

XYZ IncPursues a Low-Cost Strategy in Its Industry and Generally Needs