Compensation Purpose and Strategy Document

Compensation Purpose and Strategy Document

The purpose of this assignment is to choose a compensation  philosophy that   is appropriate for your chosen firm and articulate a rationale  for this   selection.

There are two aspects to this assignment. First, describe  the risks and   benefits with leading, meeting, and lagging the market in overall  compensation   and benefits. Next, choose the appropriate strategy (lead, meet, or  lag) for   your firm, and provide rationale about why this is appropriate.

There is a minimum requirement of 500 words for the  compensation purpose   and strategy document.

Consider some of the following factors in your  assignment:

1.     Payroll expenses are usually the highest   expense at most firms. If        you lead the market, this expense can   be taxing.
2.    If you are pursuing top talent in human   capital rich industries        (e.g., software engineering), lagging the market may   keep you from competing        for market share against your   competitors.
3.    If you meet the market, paying average   will generally not attract        top talent, and in addition, you will not have the   labor-cost savings of a        lag-the-market strategy.

Any sources used, including the textbook,   must be referenced;   paraphrased and quoted material must have accompanying   citations in APA   format.