What is the first step needed before creating a pay structure for new departments at Fresh Munchables?

Identifying what new jobs need to be created is a crucial first step before establishing a pay structure for new departments. This process involves determining the roles and responsibilities that will be necessary to achieve the organization's objectives and operational needs. By understanding the specific jobs that will be introduced, management can ensure that the pay structure aligns with the requirements of these positions, their relative worth within the organization, and the overall compensation strategy.

This step also allows for appropriate evaluation of skills and qualifications required for each job, which informs decisions on salary ranges and compensation packages. Once the job roles are clearly defined, it becomes easier to create a coherent pay structure that attracts, retains, and motivates employees effectively. This foundational work is essential for establishing a compensation system that supports the organization’s goals and ensures internal equity and external competitiveness in pay.