Topic A $-$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 question succinctly and provide an 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?