Unit VIII Assignment
Compensation Purpose and Strategy Document The purpose of this assignment is to choose a compensation philosophy that is appropriate for your chosen firm and articulate a rationale for this selection. There are two aspects to this assignment. First, describe the risks and benefits with leading, meeting, and lagging the market in overall compensation and benefits. Next, choose the appropriate strategy (lead, meet, or lag) for your firm, and provide rationale about why this is appropriate. There is a minimum requirement of 500 words for the compensation purpose and strategy document.
Consider some of the following factors in your assignment:
1. Payroll expenses are usually the highest expense at most firms. If you lead the market, this expense can be taxing.
2. If you are pursuing top talent in human capital rich industries (e.g., software engineering), lagging the market may keep you from competing for market share against your competitors.
3. If you meet the market, paying average will generally not attract top talent, and in addition, you will not have the labor-cost savings of a lag-the-market strategy.
Any sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations in APA format.
Text Book: Stewart, G. L., & Brown, K. G. (2015). Human resource management: Linking strategy to practice (3rd ed.). Hoboken, NJ: Wiley
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.