Question

What should be your first step when you formulate the compensation strategy?

a. define the required behaviour.
b. evaluate the proposed strategy.
c. determine the compensation level.
d. determine the compensation mix.

Answer 1

The first step when formulating a compensation strategy is to define the required behavior. Then, determine the compensation mix, and finally, evaluate the proposed strategy.

Step-by-step explanation:

The first step when formulating a compensation strategy is to define the required behavior.

This involves determining what behaviors and outcomes the organization wants to reward and encourage.

Once the required behavior is defined, the next step is to determine the compensation mix.

This involves deciding how much of the compensation should be in the form of base salary, bonuses, benefits, or other incentives.

After determining the compensation mix, the organization can then evaluate the proposed strategy and make any necessary adjustments before finalizing the compensation strategy.