Compensation studies are research efforts that analyze how much employees are paid for their work. These studies look at various factors, including job roles, industry standards, and geographic location, to determine fair and competitive salary levels. The goal is to ensure that organizations offer compensation that attracts and retains talent while remaining within budget. These studies often involve collecting data from various sources, such as salary surveys and industry reports. By comparing compensation packages, companies can identify trends and make informed decisions about their own pay structures and benefits, ultimately leading to improved employee satisfaction and performance.