Compensation System Design

Compensation System Design refers to the structured approach that organizations use to determine how employees are paid and rewarded. This includes setting salaries, bonuses, and benefits based on various factors such as job roles, market rates, and company goals. The aim is to create a fair and motivating wage structure that attracts and retains talent while aligning employee performance with organizational objectives. A well-designed compensation system helps ensure that employees feel valued for their contributions, which can enhance satisfaction and productivity.