Potential disadvantage of using approach

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The compensation team at Fresh Munchables is weighing the option of implementing individual-based pay within the company's total rewards system. The individual-based pay would apply to select manufacturing employees. These employees would receive increased pay contingent on their competencies and experience.

What is a potential disadvantage of using this approach?

-The cost; individual-based pay can become expensive as employee performance increases.
-The impact it has on minorities; often, individual-based pay creates bias against minority employees.
-The logistics; individual-based pay plans are overly complicated and cumbersome.

Reference no: EM132885972

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