Describe why a healthcare organization may select Lag the market as part of their compensation program based on recruitment and retention of employees?
Expert Answer
Lag the market is a compensation strategy where an organization pays less than that of competitors. This helps to reduce labor costs. Usually, the company collects external data regarding competitor’s pay and adjusts its own structure based on that. This process takes continually throughout the year.
The company find the median pay in the market and sets its employee pay below the median. Usually, such employers position themselves in the first quartile.
In healthcare organizations, such
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