Traditional compensation systems pay employees differently based on their job responsibilities and base employee increases mainly on

Question

Quizplus · Accepted Answer

Traditional compensation systems typically base employee increases on their years of seniority, meaning the longer an employee has been with the company, the higher their pay. This system does not take into account an employee's growth in capabilities and competencies or their contributions to meeting organizational objectives. The Consumer Price Index is used to measure inflation and is not directly related to employee compensation.

Traditional Compensation Systems Pay Employees Differently Based on Their Job