solution

Your team is consulting with a local manufacturing company that
has 1,200 employees and is the third largest employer in the area.
When averaging all of the manufacturing employees' salary divided
by the market midpoint, the organization has a 0.90 compa ratio,
meaning that on average employees earn 90% of the market rate.

Your firm has been asked to propose three approaches for
management to consider:

increasing base pay

adding a team incentive plan such as profit sharing or
individual incentive plan based on individual performance

a combination of base and incentive pay

Using the current sales and profit trend, the company has the
ability to increase compensation spending by 4% annually for the
next three years.