The fundamental purpose of a compensation system is to help create a willingness among qualified persons to join the organization and to perform the tasks needed by the organization.

Question

Quizplus · Accepted Answer

The purpose of a compensation system is to attract and retain qualified individuals by providing fair and competitive pay for the work they perform. When employees feel adequately compensated for their efforts, they are more likely to remain with the organization and to perform at their highest level. This ultimately benefits the organization by improving productivity, reducing turnover, and enhancing overall job satisfaction.

The Fundamental Purpose of a Compensation System Is to Help