Topic $1-$An individual in a Compensation & Performance Management class is asked to answer the following questions. Textbook: Compensation by Barry Gerhar $14$th edition.

Instructions: Determining Pay Level. Most of the focus has been on internal equity and competitiveness, now we are onto external competitiveness. The first topic is regarding Match, Lead, and Lag policies.

Please answer the following question succinctly and provide a common example to justify the individual$$s way of thinking.

$1)$If the individual were a Compensation Director, what factors would they consider when deciding on which of these $3$ pay policies to compete externally?