What is one reason for overlapping pay ranges within the compensation system at Fresh Munchables?

One reason for overlapping pay ranges within a compensation system is to allow for performance-based pay increases. This approach provides flexibility in the compensation structure, enabling organizations to reward high-performing employees regardless of their position within a specific pay range. By having overlapping ranges, companies like Fresh Munchables can offer increases based on individual performance, skills, or contributions while still maintaining a structured pay system. This can help motivate employees to perform at their best, as it allows room for differentiation in pay based on the value they bring to the organization, rather than strictly adhering to a set pay grade.

This flexibility acknowledges that employees in the same pay grade may have differing levels of experience, contributions, or performance, thus justifying differences in pay even within the same range. Therefore, overlapping pay ranges support the idea of rewarding individual performance, which is a critical component of a comprehensive total compensation strategy.