What is the first issue in developing an effective benefit system?

A) determining the tax implications
B) examining the compensation cost structure of the organization
C) establishing the administration process
D) determining the role of indirect pay in compensation strategy

Effective Benefit System

A well-designed set of employee benefits that support the wellbeing of employees and contribute to job satisfaction and retention.

Tax Implications

Tax implications are the effects of financial decisions on the amount of taxes owed, influencing individual or business finances.

Indirect Pay

Compensation that is not paid directly as cash but includes benefits like health insurance, retirement plans, and paid time off.