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Nutriment is pursuing a differentiation strategy in order to create product that is not offered by their competitors. In order to successfully attract the right staff to ensure Nutriment has a competitive advantage, the company must ensure that their pay structure is competitive in local market while also managing costs.
Nutriment has different job categories that may require different pay strategies. The administrative positions only require Nutriment to match the compensation of their competitors.
The scientists will be more difficult to attract. As such, it is likely that they will need to take a pay lead strategy for their scientist.
Nutriment may also have some concerns with internal consistency of compensation as the market will likely drive them to offer the scientists pay that is significantly more than that of the administrative staff members.
Respond to the following:
Question 1: What are some strategic considerations in establish a pay structure at Nutriment?
Question 2: Should HR suggest a pay policy to lead, leg, or match the market? Explain your recommendation.
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