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HRCI

SPHR · Question #175

The primary reason organizations develop reward strategies is to:

The correct answer is C. Improve opportunities for achieving business goals. Reward strategies are crafted not only to compensate employees but to support broader organizational objectives. They are a strategic mechanism to influence behavior, align performance, and enhance productivity -- all of which drive business success. Extract from HRCI-aligned…

Total Rewards

Question

The primary reason organizations develop reward strategies is to:

Options

  • AReduce conflicting incentives
  • BRealize cost savings and benefits
  • CImprove opportunities for achieving business goals
  • DStrengthen customer loyalty and commitment

How the community answered

(25 responses)
  • A
    4% (1)
  • B
    4% (1)
  • C
    92% (23)

Explanation

Reward strategies are crafted not only to compensate employees but to support broader organizational objectives. They are a strategic mechanism to influence behavior, align performance, and enhance productivity -- all of which drive business success. Extract from HRCI-aligned HR knowledge (Total Rewards / Leadership and Strategy): According to the SPHR framework, a reward strategy must "align with business goals to support long-term organizational performance." Compensation isn't just a cost -- it's a lever to attract, retain, and motivate the workforce to meet strategic targets.

Topics

#reward strategy#business goals#compensation design#organizational objectives

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