Compensable factors should reflect an organization's sources of competitive advantage.

Question

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Compensable factors are the key elements that an organization considers while determining pay levels for different jobs/roles. These factors should reflect an organization's sources of competitive advantage, such as unique skills, knowledge, experience, and performance of its employees. Therefore, compensable factors should be aligned with the organization's strategic objectives and competitive strengths.

Compensable Factors Should Reflect an Organization's Sources of Competitive Advantage