Which compensation strategy should the compensation team at Fresh Munchables consider for the search team?

The choice of performance-based pay to incentivize client base growth is well-supported by the principles of effective compensation strategies. This approach aligns the interests of the compensation team with the goals of the organization by directly linking pay to measurable performance outcomes. In this case, customer acquisition is a critical driver of business success, and incentivizing employees in the search team to focus on client base growth can lead to enhanced motivation and productivity.

Performance-based pay encourages employees to exceed their targets and contributes to a results-oriented culture. It can positively impact retention and employee engagement, as individuals tend to feel more valued and recognized when their compensation reflects their contributions to organizational goals. Furthermore, this strategy allows the company to manage its labor costs more effectively by only increasing compensation when specific business objectives are achieved.

The other options, although they have their benefits, do not specifically emphasize the importance of performance in driving business outcomes. Salary increases based on company profits may not effectively motivate individuals to perform, as it ties rewards to broader company performance rather than individual contributions. Commissions for acquiring new retail locations focus on transactions but may not encompass the holistic development of client relationships. Fixed pay with no variation disregards the nuances of performance and can lead to disengagement, as employees may not see strong incentives to