Skip to Content

SHRM-SCP: Conduct Workforce Needs Assessment to Develop Total Rewards Strategy

By: Author Nina Norman

Posted on

Categories Exam

Learn the first step an HR VP should take when developing a total rewards strategy for their organization. Discover why conducting a workforce needs assessment is crucial.

Table of Contents

Question

The new vice president of HR is tasked with developing a total rewards strategy in her organization. How should the VP begin the process?

A. Create a pay scale matrix with job grades.
B. Present a business case to senior leadership.
C. Conduct a workforce needs assessment.
D. Develop a compensation philosophy.

Answer

C. Conduct a workforce needs assessment.

Explanation

The most appropriate first step for the new VP of HR in developing a total rewards strategy is to conduct a workforce needs assessment (Option C).

A workforce needs assessment is a comprehensive analysis of the organization’s current and future workforce requirements. It involves:

  1. Evaluating the skills, knowledge, and abilities of the current workforce
  2. Identifying gaps between the current workforce capabilities and future needs
  3. Assessing the competitive landscape and labor market trends
  4. Determining the organization’s strategic goals and objectives

By conducting a workforce needs assessment, the VP can gather crucial data to inform the development of a total rewards strategy that aligns with the organization’s goals and attracts, retains, and motivates the right talent.

The other options, while important, are not the most appropriate starting points:

  • Creating a pay scale matrix (Option A) should be based on the findings from the needs assessment and the compensation philosophy.
  • Presenting a business case to senior leadership (Option B) is a later step, after the strategy has been developed based on the assessment findings.
  • Developing a compensation philosophy (Option D) should be guided by the insights gained from the workforce needs assessment.

In summary, conducting a workforce needs assessment is the foundational first step for the VP of HR in developing a targeted and effective total rewards strategy that supports the organization’s objectives and workforce requirements.

SHRM Senior Certified Professional (SHRM-SCP) certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the SHRM-SCP exam and earn SHRM-SCP certification.