Benson Enterprises pays lower salaries than its competitors in order to control labor costs,especially when the firm's financial condition is weak.Which type of compensation policy is most likely in place at Benson Enterprises?

Question

Quizplus · Accepted Answer

B)Companies that choose to pay below the market rate (market lag policy)because of poor financial conditions or because they are hiring employees whose skills and expected impact on the company's success are relatively lower than employees whose skills and expected impact are much greater.

Benson Enterprises Pays Lower Salaries Than Its Competitors in Order