SPHR Human Resources

Answer - C - The decision whether to lag, match, or lead the market with respect to total compensation is just that - a decision. It is not universally true that an organization’s total compensation program should be competitive with (i.e. match) the total compensation programs offered by labor market competitors.

Key Takeaway: An organization’s total compensation program should be consistent with the culture of the organization. An organization’s total compensation program should attract, motivate, and retain targeted/appropriate employees.