Which of the following would be an appropriate reason for an organization to decide to lag the market with respect to the base pay of a particular job?

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Study for the University of Central Florida MAN3302 Talent Management Exam. Use flashcards and multiple-choice questions with explanations. Get exam-ready with interactive learning!

Lagging the market with respect to base pay can be a strategic decision for an organization, particularly in cases where the company has a high tolerance for turnover in a specific job. By offering salaries that are lower than the market average, the organization may find it easier to recruit candidates who are willing to accept the position despite the lower pay, often due to the nature of the job being entry-level, lower-skilled, or characterized by high turnover rates.

In such situations, the organization might benefit from a continuous influx of new employees who are adequately trained but may not require long-term commitment or expert skills. This could allow the company to maintain flexibility in its workforce, avoiding the costs associated with higher wages that are typically necessary when trying to retain employees in roles characterized by more significant skill requirements or higher market demand.

The other contexts do not align with a strategy to lag behind market pay. For instance, if a job requires highly specialized skills or if the organization aims to attract top talent, offering competitive or higher-than-average pay is generally necessary to recruit and retain skilled individuals. Additionally, in a very competitive job market, organizations typically adjust their compensation strategies to stay attractive to potential candidates, the opposite of lagging pay.