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The compensation team is trying to determine the total number of pay grades that should be used in the engineering unit of Fresh Munchables. This unit has sometimes struggled to meet productivity goals but overall contributes to the company's mission to provide high-quality products to consumers. The engineering unit includes several dynamic job positions, and employees frequently change responsibilities as they work on a variety of different projects. Some engineering employees are promoted to become managers, but others later use the skills they have learned to apply for jobs at other companies.
How should the compensation team determine pay grades for the engineering unit? Loosely organized structure of pay grades to align with the flexible job responsibilities in engineering positions.
• Institute flexible pay grades based on how well the engineering unit meets its productivity goals.
• Establish a different pay grade for individual employees based on how much each employee contributes to the company's bottom line.
highly structured pay grade system to encourage stability and upward mobility within the engineering department.
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