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The HR department at Fresh Munchables has assigned a team to revise the company's compensation system to more accurately reflect the company's current strategic goals. The team has defined both the labor and service markets, and they are now ready to identify benchmark competitors.
While selecting these benchmark competitors, what should the team keep in mind to provide an accurate standard for comparison?
-The companies chosen should exemplify the products and service markets in which Fresh Munchables competes in order to provide a standard for the rewards system.
-The companies should be selected at random from an exhaustive list of all competitors in the health food market in order to ensure statistical reliability.
-The companies chosen should have a similar compensation system to Fresh Munchables so that the same benefits can be compared to each other.
-The companies selected should have similar values to that of Fresh Munchables in order to maintain high ethical standards in the compensation plan.
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