Discussion Question

Company executives, along with HR managers/compensation committees, must decide if their organization will be a pay leader or follower. Strategically, companies should be certain they are able to operate and still make a profit. Think of a company that follows a lag policy and a company that follows a lead policy. Why do they believe it pays to pay differently? Can you think of any companies that follow performance driven and/or work/life balance policies? Explain your choices. (150 Words)