With the demand for more nutritional food options growing, Nutriment Biotech is positioned to become a leader in agricultural biotechnology. Nutriment is a start-up biotech company that is working to develop genetically engineered food crops that offer enhanced nutrition along with easier production for farmers. Emily Hart and Harold James established nutriment as a research organization through national grant funding 5 years ago. Nutriment is one of only a few agricultural biotechnology companies focused on enhancing nutrition in food crops. The company currently has an edge over competitors as their research has led to some scientific discoveries that now position them to grow their company significantly. As a result, Nutriment is ready to start hiring staff to get operations started. Emily and Harold have hired Jack Stewart, an HR management consultant, to help them determine how to hire the most talented staff to grow their business. Jack works mostly with startup technology-based companies and plans to help Nutriment implement a recruiting and hiring plan and establish their preliminary HR management practices such as their pay structure.
Nutriment has secured additional funding to allow them to ramp up full operations quickly. An analysis of their projected workload suggests they will need to hire approximately administrative staff members including a receptionist, and office manager, lab manager, marketing professional and accountant. As an experienced recruiter, Jack is confident that he will be able to quickly identify strong candidates for the administrative staff positions. The current labor market works in Nutriment's favor and therefore, will be able to easily generate a pool of qualified applicants. The scientists will be challenging to find as they need specific expertise related to agricultural biotechnology and genetic engineering. Numbers of scientists are limited and are in demand by other competitors. Nutriment is located in a geographic area rich in research universities and other biotech firms. Jack is sure that they can attract a good pool of talent if they are able to have an attractive offer for the scientists. To start the recruiting process, Jack must first establish a pay structure. Jack meets with Emily and Harold to establish a pay level polices. Nutriment must offer a pay package that will allow them to attract and retain both administrative and scientists.

1. What are some strategic considerations in establishing a pay structure at Nutriment?

2. Should Jack suggest a pay policy to lead, lag or match the market? Explain your recommendation