Final answer:
The key argument about compensation systems in Canada is that an equitable system offers a competitive advantage, as underscored by the efficiency wage theory which links workers' productivity to their pay.
Step-by-step explanation:
According to the textbook, a key argument about compensation systems in Canada is that an equitable compensation system offers a competitive advantage for organizations (c). The efficiency wage theory supports this argument by suggesting that workers' productivity is linked to their pay. Employees who are compensated well tend to be more productive, knowing that if they lose their current job, they would potentially suffer a salary decline. Consequently, they are motivated to work harder and remain with their employer. Furthermore, employers are aware of the high costs associated with hiring and training new employees. They prefer to pay their workers a bit extra to avoid turnover, thereby saving costs in the long run and enjoying the benefits of a motivated workforce. This underscores the philosophy that providing equitable compensation is vital not just from an ethical standpoint but also from a strategic business perspective.