Compensation Purpose and Strategy Document

Consider some of the following factors in your assignment:

Payroll expenses are usually the highest expense at most firms. If you lead the market, this expense can be taxing.

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.

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.

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