1. Based on the principles of mental accounting, how should McKinsey structure their compensation package to maximize the number of offers accepted (recruiting)? Of course, we are not looking for the following answer: "Increase salaries." Assume that the total compensation is fixed (including the cost of benefits).
2. How should McKinsey structure compensation to retain employees? Again, take total compensation to be fixed. HINT: How does mental accounting suggest different compensation packages might be required for recruiting and retention?
Write-ups have a strict 600-word limit and are penalized for exceeding 600 words Shorter write-ups also tend to do poorly. Aim for 500-600 words.
Include the word count at the top of the document (e.g., "Word Count: 598").
Hint: Please do NOT define terms or write an intro, conclusion, or background. Quoting directly from readings is almost always a bad idea.
DO make sure to do the readings thoroughly including the optional ones for that topic. Knowledge cannot be faked.
Use 12-point font and 1.5 line spacing.