Use the HR Manager’s current salary and, based on your analysis in the previous questions, recommend whether Nala Bank should position the HR Manager's pay below the market, at the market, or above the market. Justify your recommendation using the results of your analysis and at least two objectives of external competitiveness.

The HR Manager's current salary at Nala Bank is R550 000.
From previous calculations:

• Mean annual salary: R629 500
• Median annual salary: R600 000
• Third quartile (Q3) salary: R762 500

The current salary of R550 000 is below both the mean (R629 500) and the median (R600 000) market salaries.

Nala Bank should position the HR Manager's pay at the market (median) or above the market (Q3).

The current salary of R550 000 is significantly lower than the market median of R600 000 and the market mean of R629 500. This indicates that Nala Bank is currently paying below the typical market rate for an HR Manager. To remain competitive and avoid being a market laggard, Nala Bank needs to increase the HR Manager's salary to at least the market median.

1. Attracting and retaining talent: Positioning salaries at or above the market (median or Q3) is crucial for attracting highly qualified HR Managers and retaining existing talent. Paying below market makes it difficult to compete for skilled professionals, potentially leading to a talent gap or high turnover.
2. Enhancing organizational performance: A well-compensated HR Manager is more likely to be motivated, engaged, and committed to the organization's success. By paying competitively, Nala Bank can secure top talent that contributes effectively to strategic HR initiatives and overall business performance.