To develop a successful reward strategy, which area must align with business objectives?

Developing a successful reward strategy requires that it aligns with the HR strategy because this alignment ensures that the compensation and benefits offered support the overall human resource objectives of attracting, retaining, and motivating talent. The HR strategy sets the framework for how an organization manages and develops its workforce, so if the reward strategy is not aligned with it, it could lead to discrepancies in talent management practices, making it difficult to achieve organizational goals effectively.

When the reward strategy is integrated with the HR strategy, it supports consistent messaging and practices in employee engagement and performance management. This alignment contributes to a cohesive experience for employees, ensuring they feel valued, which ultimately supports the larger business objectives. Without this connection, the organization may struggle to implement effective incentive programs that genuinely drive performance and meet organizational needs.