Final answer:
An organization should be a pay leader when they want to attract top talent, and a pay follower when they want to prioritize cost control.
Step-by-step explanation:
Pay leadership and pay follower roles in organizations can be determined by various factors. One important condition indicating when an organization should be a pay leader is when they want to attract and retain top talent in a competitive industry. Being a pay leader means offering higher pay and better benefits than competitors, which can help an organization stand out and attract top performers.
On the other hand, an organization should be a pay follower when they are in a less competitive industry or when they want to prioritize cost control. Being a pay follower means offering salaries and benefits that are in line with industry standards or slightly below, which can help the organization maintain profitability and manage expenses.