Final answer:
In the fourth step of developing a total compensation package, the organization determines the mix of pay elements that will make up the package.
Step-by-step explanation:
In the fourth step of developing a total compensation package, the organization determines the mix of pay elements that will make up the package. This includes deciding how much of the compensation should be in the form of base salary, variable pay (such as bonuses or commissions), benefits, and non-financial rewards (like recognition programs or flexible work arrangements).
For example, a company may decide to have a compensation package that consists of 60% base salary, 30% variable pay, and 10% benefits. This mix can vary depending on factors such as industry norms, job roles, and the organization's strategic objectives.
It's important for organizations to carefully consider the needs and preferences of their employees when designing the compensation package, as it affects employee motivation, engagement, and retention.