What should the compensation team at Fresh Munchables aim to do to attract skilled employees?

The goal of the compensation team at Fresh Munchables should be to lead the market in total compensation to attract top talent. Offering compensation that exceeds the market average is a strategic approach to draw skilled employees who have many options. When a company positions itself as a leader in compensation, it increases its ability to attract high-quality candidates who may prioritize financial rewards as a part of their career decision-making process.

Leading the market in compensation also indicates an organization's commitment to valuing its employees, fostering increased motivation and loyalty. In competitive job markets, especially for skilled positions, top candidates are likely to seek organizations that can offer not just competitive salaries but also comprehensive benefits that enhance their overall compensation package. This approach not only helps in recruitment but also in retaining talent, as employees are more likely to stay with a company that recognizes and rewards their contributions through superior compensation.

In contrast, setting compensation below market rates or ignoring market trends would likely lead to difficulty in attracting and retaining skilled employees. Matching the market in compensation may keep a company competitive, but it does not necessarily guarantee attracting the very best talent available, who may be incentivized by roles that offer superior compensation packages.