Meaning ● Ethical Compensation Modeling for SMBs is the strategic design and implementation of pay structures that are fair, transparent, and aligned with both employee performance and company values, especially as SMBs scale through automation. It ensures employees are equitably rewarded for their contributions to growth initiatives. ● Its core business benefit includes enhancing employee motivation and retention in a competitive SMB landscape. ● When implemented ethically, compensation models can significantly drive productivity improvements. ● Furthermore, this approach reduces legal risks linked to pay inequity and discrimination within the SMB sector.
