An organizational pay policy that pays above the market rate is known as a _____ policy.

Question

Quizplus · Accepted Answer

A lead pay policy pays above the market rate to attract the best candidates and retain top employees. It is used when an organization wants to be seen as an industry leader in compensation. A lag pay policy, on the other hand, pays below the market rate, while a match pay policy pays at the market rate. A discriminatory pay policy is illegal as it is based on discrimination against a specific group of employees. An advance pay policy is not a commonly used term in compensation management.

An Organizational Pay Policy That Pays Above the Market Rate