Calculate the third quartile (Q3) salary [2 marks]. Explain what the Q3 position indicates about the market [1 mark] and what positioning HR Manager salaries at the median [1 mark] versus Q3 [1 mark] would mean for Nala Bank’s remuneration strategy. (5)

The ordered salaries are: R502 000, R525 000, R550 000, R650 000, R750 000, R800 000.
There are $n=6$ data points.
The position of the third quartile (Q3) is given by the formula:

This means Q3 is located 25% of the way between the 5th and 6th values.
The 5th value is R750 000.
The 6th value is R800 000.

The third quartile (Q3) of R762 500 indicates that 75% of HR Manager salaries in the external market are below this amount, and 25% are above it. It represents the upper end of typical market salaries.

• Positioning HR Manager salaries at the median (R600 000) would mean Nala Bank aims to pay its HR Managers at a competitive, middle-of-the-road level, aligning with the typical market rate without being a market leader or laggard. This is a cost-effective approach that still attracts a good pool of candidates.
• Positioning HR Manager salaries at Q3 (R762 500) would mean Nala Bank aims to pay its HR Managers in the top 25% of the market. This is a market-leading strategy designed to attract and retain top-tier talent by offering significantly above-average compensation, but it comes with higher salary costs.

The third quartile (Q3) salary is $\boxed{\text{R}762\,500}$.