Reference no: EM132690173

Question: Allison recently graduated from college and was just offered a position as a food scientist at Fresh Munchables. The hiring director offered her a yearly salary of $48,000. However, Allison heard from a friend who graduated with her that he had been offered a yearly salary of $60,000 for a similar position at Tasty Tidbits, a competitor of Fresh Munchables in the snack industry. Allison then proposed a higher salary of $55,000 to the hiring director who refused and said that the typical compensation for an entry-level food scientist was actually $44,000. Allison turned down the job offer. Since then, Fresh Munchables has had a difficult time hiring and retaining food scientists due to higher salaries being offered at other companies.

Which challenge is the company facing in terms of external reward positioning?

(A) The ethical challenge, because managers may have colluded to raise their own pay by preventing lower-level employees from earning a reasonable salary

(B) The cost challenge, because the company did not align Allison's proposed salary with other food scientists within the company

(C) The job matching challenge, because the entry-level food scientist position has not been compared to entry-level positions in other industries

(D) The bad data challenge, because the company does not have accurate data about the average level of compensation for similar jobs within the industry