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The research and development business unit at Fresh Munchables is currently recruiting several more employees to develop a new line of superfood meal replacement smoothies. Among the new recruits, the unit will need employees who are registered nutritionists and can formulate smoothies that contain all the nutrients needed to serve as a full meal.
In considering what type of rewards system to implement for the new employees, which of the following systems will best attract employees who have the skills needed to help the new product line succeed?
-A capacity-based pay system because it provides a greater incentive to those who are willing to work longer hours and produce a greater variety of products
-An employee assistance program because it can provide a means for those who do not have a background in nutrition to gain knowledge on the job and progress beyond their current positions
-A capability-based pay system because it provides a greater incentive for employees with the specific qualifications needed by the research and development unit
-An employee recognition system because it can provide motivation for employees to innovate and come up with creative new ideas to help the research and development unit succeed
Calculate the compounding effect of an annual 5 percent merit pay increase on a salary of $60,000 over five years.
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