Asked by Kaitlynn Whitworth on May 30, 2024
Verified
Explain the difference between a "reward strategy" and a "compensation strategy."
Reward Strategy
A plan designed by an organization to recognize and provide incentives to employees for their work and achievements through financial and non-financial means.
Compensation Strategy
A plan or approach for determining how employees will be rewarded for their work, including salaries, bonuses, and benefits.
- Acquire knowledge about the parts and value of a thorough compensation approach.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
A reward strategy is the plan for the mix of all of the financial and nonfinancial rewards of work (i.e.,the mix of extrinsic and intrinsic rewards)the organization plans to provide to its employees,along with the means through which they will be provided.Used to create the reward system,this design plan needs to be determined before the compensation strategy.The compensation strategy is one part of the reward strategy and is used to create the compensation system (which is the economic or monetary part of the reward system).The compensation strategy is the plan for mix and total amount of financial returns,tangible services,and benefits employees receive as part of the employment relationship.
Learning Objectives
- Acquire knowledge about the parts and value of a thorough compensation approach.
Related questions
Which of the Following Items Is a Component of the ...
Briefly Discuss the Four Key Understandings Necessary for Successful Formulation ...
Briefly Describe the Five Main Steps in the Formulation of ...
You Have Been Asked to Provide Recommendations to a Compensation ...
In Developing a Compensation Strategy,the Two Key Questions That Must ...