Which group should be consulted to effectively implement a total compensation system?

Consulting top management is essential to effectively implementing a total compensation system because they play a crucial role in aligning the compensation strategy with the overall goals of the organization. Top management has a comprehensive understanding of the company's strategic direction, financial capabilities, and desired organizational culture, which are all critical factors in developing an effective compensation system.

Their input ensures that the compensation approach not only attracts and retains talent but also motivates employees to achieve strategic objectives. Top management can provide insights on budget constraints, organizational priorities, and long-term vision, allowing for a compensation framework that supports both the employer’s and employees' needs in a cohesive manner.

Incorporating the perspectives of mid-level managers or external auditors can provide valuable insights but lacks the overarching strategic alignment that top management’s involvement brings. Similarly, while benchmarking against industry competitors is important, it must still be integrated within the context of the organization's specific goals, which is most effectively achieved through top management involvement.