The engineering unit at Fresh Munchables is trying to attract and retain employees with a niche set of skills. The compensation team has spoken with the engineering manager and decided to create a capability-based pay system to attract qualified engineers. What should be the first step in creating this system?

Define the individual characteristics that will allow a person to be successful as an engineer in order to create value for the organization.

Create the training and support structure because the foundation of the system is dependent on it.

Select the appropriate information sources because it is essential to communicate the desired skills and abilities to potential employees.

Define the different levels of each desired skill in order to create an appropriate basis for skill measurement.