Clarity of objectives of wage and salary administration

Question

What do you mean by clarity of objectives or purposes of wage and salary administration?

Answer 1

Last but not the least in terms of its significance, in order to have effective and efficient administration of compensation as an area in the organization, one must have accurate clarity about the purposes that it may tries to satisfy through policy decisions. Objectives may be attracting talented resources; retaining and motivating employees; financial management of an organization; satisfying legal Requirement; and many more. Sometimes these objectives are conflicting in nature also. So it is very essential that one, who is going to carry out this responsibility of designing the compensation system in the organization, should have reasonable clarity for objectives to be satisfied with the design.