PetFair, a national chain of pet supply stores, employs nearly 1,000 workers. In the past two years, the firm's market share has dropped and employee turnover has increased.
The vice president of human resources at PetFair suggests implementing a new compensation policy to improve the firm's performance and retain quality workers. Currently, PetFair employees receive compensation primarily based on years with the firm and job level. Which of the following, if true, best supports the argument that PetFair should implement a competency-based pay system?
A) PetFair uses the classification method to price management jobs.
B) PetFair sales representatives earn straight commissions.
C) PetFair managers experience variable work assignments.
D) PetFair offers a profit-sharing plan to top executives.
Question 2
Competency-based pay plans are increasingly common as employees shift from traditional jobs to variable work assignments.
Indicate whether this statement is true or false.
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