1. Fair Compensation: It ensures that employees are compensated fairly based on the responsibilities and demands of their roles. 2. Internal Equity: It helps maintain internal equity by creating a transparent pay structure where similar jobs receive similar compensation. 3. External Competitiveness: Aligns internal pay structures with external market rates, aiding in attracting and retaining talent. 4. Legal Compliance: Assists in complying with labor laws and regulations related to equal pay and non-discrimination.