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The compensation team at Fresh Munchables is working on a capability-based pay system for the information technology unit. While developing a capability-based pay system, it is critically important to ensure that employee skills and competencies are tied directly to the desired performance outcome.
Question 1: How can the compensation team facilitate this critical need?
Option 1: They must ensure that the measurement is strategic, meaning that the desired skills are tied to employee performance and are in line with company goals.
Option 2: They must ensure that the measurement is transparent, meaning that employees who take the initiative to develop new skills receive capability-based pay raises.
Option 3: They must ensure that the measurement is consistent, meaning that every employee should be responsible for conducting a peer review of other employees.
Option 4: They must ensure that the measurement is reliable, meaning that employees who have certain skills consistently perform better than those who do not have those skills.
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