In regard to evaluating the compensation system, which of the following is NOT true?
A) Most organizations don't even try to evaluate their systems.
B) A slipshod attempt at evaluation may do more harm than good.
C) Compensation costs below budgeted levels should make you happy.
D) If the budget was not realistic in the first place, comparisons are meaningless.

Question

Quizplus · Accepted Answer

Compensation costs below budgeted levels may indicate cost savings, but may also indicate underpayment of employees or not being able to attract and retain top talent. Therefore, it should not necessarily make an organization "happy" without further analysis of the causes and implications.

In Regard to Evaluating the Compensation System, Which of the Following