Employees who have a say in the design of the compensation system are likely to view it as what?

Prepare for the HRM/324T – Total Compensation Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

When employees have a say in the design of the compensation system, they are likely to view it as procedurally fair. This sense of fairness stems from the fact that participation in the decision-making process fosters a feeling of ownership and investment in the system. When employees can contribute their perspectives and insights on how compensation is structured, it enhances their perception of the process as equitable and transparent.

Involving employees in these discussions not only helps them to understand the rationale behind compensation decisions but also increases trust in the organization. This participatory approach signals to employees that their opinions are valued, which can significantly boost morale and engagement. As a result, they are more likely to perceive the compensation system as just and fair, which is the essence of procedural fairness.

A system designed with input from its users tends to reflect the needs and values of those it serves, leading to higher satisfaction and acceptance of the policies that govern compensation.

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