Article three: An individual is asked to read this article published on the Harvard Business Review Website $$Why Your Organization Should Use Salary Benchmarking$$ written by Zo$$ B$.$ Cullen, Shengwu Li$,$ Ricardo Perez$-$Truglia, Annemarie Schaefer, and Brent Weiss in $($October $2023).$ The article talks about the value of any job is usually attributed to compensation $($wages$)$ from an employee$$s perspective, while from an employer$$s view, it is associated with performance and productivity, which makes this discussion an interesting one.

Cullen expresses the increased focus on fair salary practices in the U$.$S$.$ due to transparency policies, which has consequently elevated the importance of salary benchmarking. This involves using aggregated market data to determine competitive pay rates, as setting salaries involves a delicate balance between avoiding excessive payouts and ensuring attractiveness to potential employees. A recent study introduces a theoretical model emphasizing the significance of firms understanding the market value of candidates when making competitive offers through salary benchmarking.

Please answer the following questions thoroughly and succinctly and provide an example for each question to justify the individual$$s way of thinking.

$1)$How do transparency policies, such as salary history bans, impact the dynamics of salary negotiations between employers and candidates, and how can salary benchmarking help in navigating these challenges?

$2)$In the context of setting competitive salaries, what are the potential risks and benefits for companies in relying on salary benchmarking?

$3)$Lastly$,$ how does the individual think organizations can strike a balance between offering attractive compensation packages and ensuring cost$-$effectiveness in the current job market landscape for improved performance?