Which of the following would be the best choice for a compensation system?

A) A competitive base pay and incentives are offered.
B) Employees share in the organization's profits.
C) Compensation is linked to knowledge.
D) The system is cost effective and achieves company goals.

Compensation System

A framework used by organizations to plan, implement, and manage how employees are paid for their work, including salaries, bonuses, and benefits.

Base Pay

The initial rate of compensation an employee receives before any bonuses, benefits, or additional pay is added.

Incentives

Motivations or rewards offered to encourage specific behaviors or actions in individuals or groups.