Asked by Judeline Adolphe on May 31, 2024

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You have been tasked with providing senior management with a plan to evaluate the effectiveness of a new compensation system to be launched by an organization.What is NOT a typical approach associated with evaluating the impact of a compensation system?

A) impact on a company's return on equity
B) impact on compensation objectives
C) impact on compensation costs
D) impact on employees' attitudes and behaviours

Return On Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Compensation Objectives

Goals that an organization's pay system aims to achieve, such as attracting and retaining employees, rewarding performance, and ensuring equity.

Compensation Costs

The total expenses incurred by an employer to provide wages, salaries, and benefits to their employees.

  • Evaluate the effectiveness of compensation systems through various metrics.
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LH
Lawrencia HoustonJun 06, 2024
Final Answer :
A
Explanation :
Evaluating the impact of a compensation system on a company's return on equity is not a typical approach, as return on equity is a financial metric that is more commonly used to evaluate the overall financial performance of a company, rather than specific HR initiatives such as compensation systems. The other options listed are more typical approaches for evaluating compensation systems.