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Asked by estefani Ramirez on Jun 04, 2024

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What should be your first step when you formulate the compensation strategy?

A) Define the required behaviour.
B) Determine the compensation mix.
C) Evaluate the proposed strategy.
D) Determine the compensation level.

Compensation Strategy

A compensation strategy is an organization's plan for determining the pay scales and job benefits for its employees, aligning them with its business goals and competitive practices.

Compensation Mix

The combination of various forms of pay (such as salary, bonuses, and benefits) that constitute the total compensation offered to employees.

Required Behaviour

Actions and conduct expected from individuals in a particular role or position, as defined by job descriptions, organizational norms, or cultural expectations.

  • Gain insight into the process and considerations important in establishing an effective compensation strategy, including its legal, financial, and strategic aspects.
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Zybrea KnightJun 04, 2024
Final Answer :
A
Explanation :
The first step in formulating a compensation strategy should be to define the required behaviour. This involves identifying the key goals and objectives of the organization, and determining what behaviours and actions are needed from employees in order to achieve them. Once this has been established, the compensation strategy can be developed, taking into account factors such as the compensation mix and level, as well as the evaluation of the proposed strategy.

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