Compensation Policy
Compensation Policy : policy that provides general guidelines for making compensation decisions Pay leaders : Organizations that pay higher wages and salaries than competing firms
To attract high-quality and productive employees and thus achieve lower per-unit labor costs Attract more highly qualified applicants in the same labor market
Market (going) rate : Average pay that most employers provide for a similar job in a particular area or industry
Pay followers : companies than choose to pay below the going rate because of poor financial condition or a belief that they do not require highly capable employees
Really save money ? Why