As head of the human resources department for a new company you have been asked to formulate a compensation strategy.What do you need to determine first?

Question

Quizplus · Accepted Answer

Before formulating a compensation strategy, it is important to determine the role that compensation will play in the reward system. This involves considering factors such as whether the company wants to differentiate itself on the basis of compensation, what the company's overall reward philosophy is, and how compensation fits into the overall employee value proposition. Only after these factors have been considered can the appropriate mix of compensation components and total amount of compensation be determined. Organizational culture is also an important consideration, but determining the role of compensation should come first.

As Head of the Human Resources Department for a New