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3. What should Costa Vida’s compensation strategy look like?4. What should the pay structure look like? What pay mix would you recommend? 5. How should Nathan communicate a new compensation strategy to his franchisee owners and managers? 6. What effect will paying higher wages have on Costa Vida in the short term? What effect will it have in the long term? Explain. The short term effect of paying higher wages include: increase costs, increase of wages, increase employee motivation, increase employee job satisfaction, and decrease profits. The long term effect of paying higher wages include: increase employee job satisfaction, increase productivity, decrease in employee turnover, improved customer service, and increase profits.