Before adopting a compensation strategy,it must be able to pass through three screens: affordability,legality,and employee attraction.

Compensation Strategy

An organization’s approach to determining how to reward employees, incorporating elements such as pay levels, benefits, incentives, and performance evaluations.

Affordability

The degree to which something is financially viable or within one's financial means, often used in reference to budgeting and financial planning.

Legality

The state or condition of being in accordance with the law.