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Although Fresh Munchables has been hiring many young and highly-educated people lately, the company still strongly values its more tenured employees who have been with the company for many years. It's important to the company that all employees, regardless of demographics, are paid fairly within their respective pay ranges. As Fresh Munchables is building out its new compensation system, the compensation team must establish pay ranges that allow for growth within a job.
While establishing these ranges, it would be most prudent to do which of the following?
-Move the pay ranges close together in order to allow employees to move to higher pay grades more quickly.
-Exclude the use of pay grades altogether because it is considered to be an outdated practice.
-Move pay ranges far apart from each other in order to allow for more direct compensation and fewer indirect benefits, thus saving the company money.
-Allow pay ranges to slightly overlap successive pay grades in order to allow for higher performance-based pay without moving grades.
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