Topic B $-$An individual in a Compensation & Performance Management class is asked to answer the following questions. Textbook: Compensation by Barry Gerhar $14$th edition.

Instructions: This piece from the Motley Fool. It has some interesting points about the right way to devise a compensation strategy. This can be seen in the following synopsis of the article below:

Compensation is a crucial factor in job offers, as it can sway candidates to accept or reject job offers. Insufficient compensation can hinder the hiring process and attract new talent. Companies should develop a well$-$thought$-$out compensation strategy to avoid risks such as retaining current staff and attracting new talent. Setting goals, researching current compensation, and deciding on how to increase salaries over time are essential steps in establishing a competitive compensation system. Additionally, considering benefits such as health insurance, paid time off, and $401($k$)$ matching is crucial. Having a well$-$thought$-$out compensation strategy can help attract and retain talent, ultimately benefiting the company.

$-$After having read the synopsis of the article above, please answer the question succinctly and provide an example to justify the individual$$s way of thinking.

$2)$What are some mistakes that companies make with their compensation strategy that hurts their competitiveness? This can be specific$/$personal examples or just things the individual is aware of$.$