Final answer:
Before adopting a compensation strategy, companies must consider affordability, legality, and employee attraction.
Step-by-step explanation:
The statement in the question is true.
Before adopting a compensation strategy, it is important for a company to ensure that it passes through three screens: affordability, legality, and employee attraction. Affordability refers to whether the company can afford to implement the compensation strategy without negatively impacting its financial health.
Legality ensures that the strategy complies with labor laws and regulations. Employee attraction focuses on whether the strategy is competitive enough to attract and retain talented employees.