When determining how to set their level of wages, an organization should consider the following:
A) Leading the market will not attract more or better applicants.
B) Paying at market will help control labor expenses.
C) Lagging the market will lead to increased pay satisfaction.
D) Leading the market will create turnover.
E) Paying at market will decrease the number of applicants.

Question

Quizplus · Accepted Answer

Paying at market will help control labor expenses while still being competitive enough to attract and retain qualified employees. Lagging the market will likely lead to dissatisfaction and turnover, while leading the market may be financially unsustainable. Therefore, paying at market is a reasonable and practical approach.

When Determining How to Set Their Level of Wages, an Organization