Orange Taxi Service, a small taxi company entering the domestic market, advertised jobs for experienced drivers at salaries that were below market value.The organisation promised applicants that as the taxi service grew it was anticipated that it would offer drivers salaries that were well above market value.Which policy was Orange Taxi Service adopting in relation to rewarding employees?

Question

Quizplus · Accepted Answer

The company is adopting a lag-lead policy in relation to rewarding employees. This means that initially, the company is offering lower salaries (lag) as compared to the market value, but as the company grows, it plans to offer salaries that are higher than the market value (lead).

Orange Taxi Service, a Small Taxi Company Entering the Domestic