What is the main purpose of revising the compensation system at Fresh Munchables?

The primary reason for revising the compensation system at Fresh Munchables is to ensure alignment with the company's current strategic goals. A well-structured compensation system should directly reflect the organization's objectives and support its mission. When the compensation structure is aligned with strategic goals, it can incentivize employees to work towards those objectives, driving performance and overall organizational success.

For instance, if the company is aiming for growth in a new market or focusing on innovation, the compensation system can be designed to reward employees who contribute to these areas specifically. This alignment helps to foster a sense of purpose among employees, as they clearly see how their contributions impact the company's success and are motivated accordingly.

While increasing employee satisfaction is important, it is often a byproduct of a compensation system that is strategically aligned rather than the primary goal. Compliance with labor laws is necessary but doesn’t inherently drive changes that directly support the organization’s strategic objectives. Reducing payroll expenses may be a consideration during the revision process, but if the emphasis is solely on expense management, it could detract from creating a motivating environment that aligns with the company's aspirations. Thus, the focus on aligning the compensation system with strategic goals is crucial for long-term success and employee engagement.