Asked by Jessica Lapnow on Apr 29, 2024
Verified
Keegan, the human resource manager at R&S Inc., is advising the company's business executives that paying more for labor than competitors can support the company's strategy. Under what conditions might Keegan's idea be most valid?
A) R&S pays more to attract top talent, applying employees' knowledge to be more innovative than competitors.
B) R&S intends to charge more than competitors for the same kinds of products.
C) R&S hopes other companies will eventually match R&S's pay scale.
D) Labor costs are a large part of R&S's total costs.
E) R&S is developing a low-price strategy that will generate more sales.
Top Talent
Top talent refers to the most highly skilled and capable individuals within a particular field or industry.
Labor Costs
The total sum of all compensation, benefits, and taxes paid to employees by an employer for their work.
- Understand the strategic implications of paying more for labor to attract top talent and support a company's competitive strategy.
Verified Answer
JR
Jackie renteriaApr 30, 2024
Final Answer :
A
Explanation :
Paying more to attract top talent can lead to a more innovative workforce, which can give R&S an advantage over competitors. This aligns with the company's strategy of differentiation and can justify paying more for labor than competitors. The other options do not necessarily support paying more for labor than competitors.
Learning Objectives
- Understand the strategic implications of paying more for labor to attract top talent and support a company's competitive strategy.