If labor supply is greater than labor demand an organization would most likely follow a "lead the market" strategy in regard to compensation.

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If labor supply is greater than labor demand, an organization would most likely follow a "lag the market" strategy in regard to compensation as they have a larger pool of candidates to choose from and can offer lower salaries to attract workers. A "lead the market" strategy is typically used when labor demand is greater than labor supply to attract top talent.

If Labor Supply Is Greater Than Labor Demand an Organization