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Instructions: Answer the questions below, 500 words, APA format, Use attached Case Study to answer Question 1 (Module/Week 5 Topics– Discretionary Benefits, Retirement Plans, and Health Insurance). For question 2 use this link: http://www.gbv.de/dms/zbw/629645353.pdf to get 1 key topic from (CHAPTER 9 & 10).

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  1. Identify 1 issue or idea from the Case Study assignment that you might have answered differently if you had the knowledge from the Module/Week 5 readings.

    B. For the readings assigned this module/week (CHAPTER 9 & 10), choose 1 key topic from the sub-headings in the table of contents. Briefly summarize the topic and find at least 2 scholarly sources that support or re-direct the topic?



Nutriment is a company working in the field of Biotechnology. The company was founded by Emily Hart and Harold James. Jack Stewart is the Human Resources Manager there. Now the company wants to increase its business and wants lead in the market for this purpose the company wants to hire brilliant minds so that the company could prove itself in the market. For making these decisions the company needs a good pay strategy for the employees that result in profitability for both the employee and the company. In the case study, the strategies and strategic considerations required by the company along with some recommendations will be highlighted and discussed briefly which can be used for new employment. Also, this case study will examine which type of pay structure to utilize based on the best interest for a company.

Keywords: pay structure, strategies, market, success

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Nutriment Pay Structure

As Nutriment is working in the field of Biotechnology, it is their desire need to have intelligent people in their company in the research field like scientists as well as good administration. Especially in this time of tough competition, it is getting difficult for Nutriment to hire these people who can give them leadership in the market (Martocchio, 2017). The company is trying to hire scientists and managers who will make a difference. It is very important for the company to have a very good and profitable pay structure for the employees which should also be profitable for the company.


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Strategic Considerations

Regular Pay Structure for the employees is very important. It gives a specific way for the company to move forward and get a good response from its employees. Nutriment can have a very good pay structure if the company gets the details of the pay structure from rivals. The best way to know their pay structure is by conducting a survey. Through this survey, the company will be able to decide what kind of salary packages should be given to the employees. In addition to the survey, the company will get some key points to hire the best employees.

Types of a pay structure

The company can use some of the possible pay structures to assist in this process. There are three kinds of pay structures relative to competitive companies such as lead, lag and match pay strategies. In the lead pay structure, a specific company pays higher to the employees as compared to the competitive companies, gives them extra bonuses, and allowances. This is the most beneficial package and attracts employees. With the lagging pay structure, a specific company pays lesser to the employees as compared to the other companies with at least a retirement package and some kind of allowances included, but it is the company’s preference to whether they want to give this package to their employees or not. While in the match pay strategy, a specific company pays their employees equal to the market rate and give them the same benefits, retirement packages and allowances which are going to be followed in the other companies. Nutriment must select one of these three payment strategies to pay their employees. However, if they do not follow one of these strategies then it is also good for the company to have more than one payment strategy. Although the different pay strategies will not give them the desired market value.

Pay Policy to Lead, Lag, or Match the Market

There are some key points in which an employee has interest and company should also keep these things in mind while recruiting employees. The most important of them is a good salary package, health insurance, a retirement package, home allowance, and other specific allowances. While keeping these things in mind the Human Resource Manager should have a flexible pay structure for employees. As some employees are assets to the company and deserve a very good salary package because they play a key role in gaining profit and generating the vast majority of revenue for the company (Klaas & McClendon, 2012). Jack should give them a lead package i.e. to give them a decent amount of salary as compared to the other companies. The people who are associated in this category are the scientists working on the research programs, people from the management department and the executives of the company. If a company gives this package to their high-level employees, the discretion of the secret information of the company will be withheld from their rivals. It will be better to have a leadership strategy for such a kind of employees.

In contrary, some employees who work as an assistant to higher employees. These employees are working under the commands of an executive class employee who give them orders according to the company strategies and they must bring results. If the Human Resource manager pays these employees according to the lead class, it is very beneficial to employees, but it could not be favorable to the company. It is because the lead class does not generate enough revenue for the company. The employer cannot give the lag salary package to this class because it is not suitable for these types of employees. Although they are not in the executive class, they are also fruitful for the company. The salary package which is best suited for the employees of this category is matched strategy. This occurs because in the competitive companies the same rule is followed for this class (Schmidt, Spann & Zeithammer, 2012).

While the employees who work in the company at a lower level than assistants are the people who provide actual physical labor. These employees have lesser salaries and pay strategies as compared to higher-level employees. However, when the company can afford the lead pay structure for these employees then it is good for the company’s reputation. But in case it becomes a burden on the company to bear their expenses and it is not good for the employees and even for the company’s reputation (Messmer, 2005). Employees who are paid according to match strategy receive a good package but in case some employees are at a beginning level and need training. When this occurs, the company can give them a lag pay package and put the other amount towards training and learning activities. This concept is beneficial for the company, employees, and provides growth for both in the market. The amount which a company invests in their employees can give them a hefty amount of profit in the future.


As Nutriment wants to grow its business and wants the leadership in the market, the best strategy for the Nutriment is to follow the lead pay structure. It is evident that lead pay structure attracts the employee (Bryant & Allen, 2013). There are a lot of reasons to have talented people within the company at both the administrative level and scientists in the research field too. And in return Nutriment eventually succeeds in increased revenue and consumers by hiring the employees. Additionally, the chances increase for the company to lead in the business market. So, if Nutriment wants to earn a lot of profit, the company must take these tough decisions and pay all employees according to the lead pay strategy.




Bryant, P., & Allen, D. (2013). Compensation, Benefits and Employee Turnover. Compensation & Benefits Review45(3), 171-175. doi: 10.1177/0886368713494342

Klaas, B., & McClendon, J. (2012). To Lead, Lag, Or Match: Estimating the Financial Impact of Pay Level Policies. Personnel Psychology49(1), 121-141. doi: 10.1111/j.1744-6570.1996.tb01794.x

Martocchio, J. J. (2017). Strategic compensation: A human resource management approach (9th ed.). Upper Saddle River.

Messmer, M. (2005). Building employee job satisfaction. Employment Relations Today32(2), 53-59. doi: 10.1002/ert.20063

Schmidt, K., Spann, M., & Zeithammer, R. (2012). Pay What You Want as a Marketing Strategy in Monopolistic and Competitive Markets. SSRN Electronic Journal. doi: 10.2139/ssrn.2191934

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