case study2.docx - Costa Vida Case Study Why is it important for pay to be externally fair Paying externally fair wages is part of attracting future

case study2.docx - Costa Vida Case Study Why is it...

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Costa Vida Case StudyWhy is it important for pay to be externally fair? Paying externally fair wages is part of attracting future employees, and able to compete with other organizations seeking the same workers. As mentioned in the case study, when you pay lessyou will have issues with turnover and retention, but competitive wages attract “more committedworkers that provide better service”. Why is it important for pay to be internally fair? Having a structured pay system, and being able to communicate, and monitor pay practices enables companies to promote harmony in the work environment and maintain employees motivated. On the other hand, unstructured pay policies and pay inequality can generate costly lawsuits. What should Costa Vida's compensation strategy look like? (Hint: What are the company objectives and how can employee pay help to achieve those objectives?)The most important aspect of Costa Vida’s compensation strategy is that it should mirror its objective of providing excellent customer service to continue driving business. The CEO
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  • Fall '16
  • Dr. Sweet
  • Management, higher wages, compensation strategy, Costa Vida, Costa Vida Case Study

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