Objectives sound compensation structure tries to achieve

Question

What are the objectives which sound compensation structure tries to achieve?

Answer 1

A sound compensation structure tries to achieve following objectives

1. To attract manpower in a competitive market.

2. To control wages and salaries and labour costs by determining rate change and frequency of increment.

3. To maintain satisfaction of employees by exhibiting that remuneration is fair adequate and equitable.

4. To induce and improved performance, money is an effective motivator.