The policy formed on the level of rewards indicates whether the company is a high payer, is content to pay median or average rates of pay or even, or accepts that it has to pay below the average. Pay policy, which is sometimes referred to as the ‘pay posture’ of a company, will depend on a number of factors with the ongoing strategy. These include the extent to which the company demands high levels of performance from its employees, the degree to which there is competition for good-quality people, the corporate culture, and whether or not it can or should afford to be a high payer.
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