Which of the following can be a consequence of poorly structured compensation strategies?

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!

A poorly structured compensation strategy can lead to employee disengagement. When employees feel that their compensation does not reflect their contributions or is not competitive with the market, it can result in feelings of undervaluation and disconnection from their work. This disengagement manifests as reduced motivation, lower productivity, and an overall lack of enthusiasm for their roles. Employees may question their worth within the organization, leading to diminished morale and commitment to the company’s goals.

In contrast, well-structured compensation strategies are designed to align employee performance with the organization's objectives, promote fairness, and recognize individual contributions, which are crucial for maintaining motivation and engagement levels.

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