“We have been measuring ourselves whether we succeed or fail based on the quality of the stores
we’ve opened. When stores open with strong sales volume and strong profitability for our
franchisee, we’re happy. We would much rather to have a manageable or sustainable growth rate
than open, say, 50 stores next year and a have a number of those not be profitable. This is our
preferred path to success. Jeff Jacobson Costa Vida Chief Operating Officer
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1. Why is it important for pay to be externally fair?
It is important because more than ever global market increase competitiveness in all levels and
salary is not the exception. To ensure fair pay is necessary to using industry and regionally-
specific market data to establish appropriate salary ranges for each position which means
determining Company Market Value. The compensation paid to the employees would affect the
company’s fame, retention rate employee’s satisfaction also acts as a competitive factor in the
market. The externally fair salary structure must be careful designed to survive in this
competitive environment. In the case of Costa Vida, they want to have a fair pay structure
employees to reduce turnover if their competitors pay more with a similar work profile, it will
demotivate their employees, and the company will lose its business. They must be aware of what
the competitors are offering to their employees while formulating salary structures to meet or
exceed the industry standards.
2. Why is it important for pay to be internally fair?
Internally fair pay is as important as the externally fair pay. While designing a salary structure
the company should be extremely careful to internally fair, otherwise will lead the employees to
believe it is favoritism to certain people. Once the market data established pay ranges the
companies incorporate that data into their overall salary structure, so jobs of comparable value
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How the Drive Thru Reinvented Costa Vida. (n.d.). Retrieved September 21, 2020, from
https://www.qsrmagazine.com/exclusives/how-drive-thru-reinvented-costa-vida
are assigned to the same grade range, and the range of pay is the same for those jobs, which
promotes equity, teamwork which assures that employees within an organization are paid fairly
versus each other. I found employee stories in the Linkedin Company’s account employees’
stories about their experience in the company. I choose the story of Smith Beynon, a Training
Content Manager at the Support Center. He started at the company at the age of 15 years old,
after eight years, he said “I love my job and I can’t imagine being anywhere else”.
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So, in his
statement he explain his connection with Costa Vida.
3. What should Costa Vida’s compensation strategy look like?
“People are always happy when eating their favorite food, so it’s a pretty great way to make a
living. Costa Vida is a compassionate company too, one that puts people before profits. So,
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