Final answer:
The organization's pay philosophy that starts at the 25th percentile and aims for the 75th percentile later is known as Lag-lead. Other pay strategies include Market leader, Matching the market, and Market lag.
Step-by-step explanation:
If an organization decides to focus on the 25th percentile of the market at the beginning of the year and then aims to catch up to the 75th percentile in the second half of the year, the type of pay philosophy the organization has adopted is often referred to as Lag-lead. This strategy indicates that the company initially pays wages lower than the market average (lag), then progresses towards a higher than average pay (lead) throughout the year. This approach is used to manage compensation costs while remaining competitive in the market.
In contrast, Market leader organizations aim to consistently pay more than the average market wages to attract and retain top talent. On the other hand, Matching the market is a philosophy where organizations aim to pay wages that are directly comparable to the market average. Lastly, Market lag organizations regularly pay below the market average and may not have a strategy to increase wages to match or exceed the median.