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SPHR · Question #22

In designing a total compensation strategy, organizations should first consider:

The correct answer is D. A plan to support overall goals and objectives. All compensation and rewards strategies must begin with strategic alignment. The compensation structure should reinforce business objectives, such as performance, innovation, retention, or cost management. Extract from HRCI-aligned HR knowledge (Total Rewards): SPHR-level…

Total Rewards

Question

In designing a total compensation strategy, organizations should first consider:

Options

  • AThe use of consultants to advise HR on the proper strategy to use
  • BPay rates and the cost of current health and welfare plans
  • CThe total rewards system used by major competitors
  • DA plan to support overall goals and objectives

How the community answered

(25 responses)
  • B
    8% (2)
  • C
    4% (1)
  • D
    88% (22)

Explanation

All compensation and rewards strategies must begin with strategic alignment. The compensation structure should reinforce business objectives, such as performance, innovation, retention, or cost management. Extract from HRCI-aligned HR knowledge (Total Rewards): SPHR-level planning starts with "ensuring compensation philosophy supports the broader organizational strategy." Business goals dictate how compensation elements are prioritized -- not

Topics

#total compensation strategy#strategic alignment#organizational goals#rewards design

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