9 ADVANTAGES OF FAIR COMPENSATION SYSTEM

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A fair compensation system is one in which employees are adequately compensated based on their performance, experience, and job requirements.

It is a compensation system where the level of employee pay is both fair and equitable.

Fair compensation system means that everyone doing the same work must be given equal pay and there should mean no discrimination whatsoever on the pay given to employees.

Every organization should have a fair compensation system. 

The following are the advantages of a fair compensation system:

1. Because every employee desires fair compensation, it helps increase job satisfaction.

2. A fair compensation system will aid in increasing worker productivity because satisfied employees are typically more productive than dissatisfied employees.

3. A fair compensation system motivates workers to improve performance and meet management standards

4. This system will encourage the process of job evaluation. It will also help in the establishment of an ideal job evaluation that is transparent, realistic, and doable.

Meaning of labor exploitation

5. It lessens instances of labor exploitation 

6. It boosts employees' morale while also encouraging collaboration among workers and employees.

7. A fair compensation system is a necessity for complying with government regulations.

8. A fair compensation system would also result in the peaceful resolution of industrial disputes as the majority of industrial disputes are compensation-related.

9. It reduces the rate of labor turnover as satisfied workers will likely remain in the organization.

Ok, that is all. Please let me know in the comment section if you have any queries that we can answer for you.

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