Compensation is one of the organization’s largest expenditures.Compensation philosophies and systems vary from one organization to the next.Why is that? October 5, 2022 by 8i9x6 There is no “one right way” to compensate employees. Many systems will work equally well in any organization. Different organizations have different organizational objectives and strategies. Legal requirements mandate different types of compensation systems depending on the organization’s industry. Organizations depend heavily on consultants to design their compensation systems, and each consulting firm has its own system. See Answer Different organizations have different organizational objectives and strategies.