Asked by rufyjane stephen manuere on May 28, 2024

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As the owner of a medium-sized engineering consulting firm,you decide to implement a compensation level policy that compensates your employees based on market rates.Which type of compensation policy have you adopted?

A) lead
B) match
C) hybrid
D) lag

Compensation Level Policy

A strategic approach adopted by organizations to decide the pay levels for their employees, typically aiming to balance competitiveness with budget constraints.

Market Rates

The average or expected pay for a specific job role in the employment market.

  • Understand the principles behind different compensation-level policies.
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Elhussein AhmedJun 01, 2024
Final Answer :
B
Explanation :
A match compensation policy compensates employees based on market rates, meaning that salaries and benefits are aligned with what competitors are offering. This helps to attract and retain top talent and ensures that employees are being fairly compensated for their skills and expertise. A lag compensation policy pays employees below market rates, while a lead policy pays employees above market rates. A hybrid compensation policy is a combination of different types of compensation policies. In this case, a match policy is the best choice for the engineering consulting firm to stay competitive in the job market.