Question

The XYZ Company is a world leader in medical device manufacturing. Aiming to continue its market position in this industry, the XYZ Company pursues a differentiation strategy. As a result, this company compensates its employees higher than competitors in order to attract and retain the best employees. What kind of pay level policy does the XYZ Company follow?

Answer 1

Market lead

Step-by-step explanation:

Market lead pay policy involves a company paying its employees higher wages and offer compensation that is higher than the pay rates of its competitors. This type of pay policy is normally used by organizations in highly competitive markets and helps to attract more experienced and qualified employees. This strategy leads to an increase in the overall labor cost and there is need for the organization to monitor if the benefits of the strategy is realized.