Reference no: EM132748340

One of the ways that Fresh Munchables grows its revenue streams is by finding new retail locations to sell products. The company is currently seeking to grow its client base and has established a search team to seek out and acquire new retail locations. The search team is composed of self-motivated employees with a growth mindset toward development and goal achievement, and they are currently being paid a base salary. The compensation team is going to revise the current pay plan to motivate these employees even further.

Question 1: Which of the following forms of pay will help Fresh Munchables reward the desired behaviors?

Option 1: Piece-rate pay, because it is the gold standard for customer relations employees and provides a foundation for performance appraisal
Option 2: Capability-based pay, because some employees naturally have better social skills and are better at persuading new clients to partner with them
Option 3: Hourly pay, because the more time the team members spend contacting potential clients, the more they will be paid
Option 4: Performance-based pay, because it provides an incentive for the team members to produce the desired result of growing the company's client base