Compensation strategy

Compensation strategy is the plan a company uses to determine how to pay and reward employees. It ensures that pay structures attract, motivate, and retain talent while aligning with the company's goals. This involves decisions about salaries, bonuses, benefits, and other perks, balancing competitiveness with budget constraints. A well-designed compensation strategy helps create a fair and motivating work environment, encourages performance, and supports overall business success. It also considers industry standards, job value, and individual contributions to maintain internal equity and external competitiveness.