What is the first step to effective compensation according to the "Road Map to Effective Compensation"?
A) Develop new job descriptions.
B) Understand your organization and your employees.
C) Determine your compensation values.
D) Cost out the plan.

Question

Quizplus · Accepted Answer

Understanding your organization and employees is crucial in developing a compensation plan that meets their needs and aligns with the company's goals. This step involves assessing the company's culture, goals, and values, as well as surveying employees to gather feedback on their compensation preferences and concerns. Without this foundational knowledge, developing new job descriptions or determining compensation values can be premature and ineffective. Costing out the plan would come later in the process.

What Is the First Step to Effective Compensation According to the "Road