Please read Chapter 9 Case Study #2 on pages 431 – 432.

In your first post please address the following:

1.  Why is it important for pay to be externally fair?  

2.  Why is it important for pay to be internally fair?

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 franchise 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.

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