The primary reason organizations develop reward strategies is to:

Reward strategies are crafted not only to compensate employees but tosupport broader organizational objectives. They are a strategic mechanism toinfluence behavior, align performance, and enhance productivity — all of which drivebusiness 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 alever to attract, retain, and motivatethe workforce to meet strategic targets.