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.
Starbucks is one of the few companies which is known for its leading reward and compensation policies. The company has a notable Starbucks College Achievement Plan in place under which eligible U.S. employees receive a full-tuition coverage for a bachelor’s degree from Arizona State
