The individual-based approach to rewards assumes that compensation is based on what?

The individual-based approach to rewards focuses on the characteristics and contributions of the person holding a job rather than external factors like company profits, team dynamics, or general performance metrics. This approach recognizes the unique skills, experiences, and qualifications that each employee brings to their role. By emphasizing individual traits, this method seeks to align compensation with personal attributes such as education, experience, and capabilities that directly impact job performance.

This approach aims to motivate employees by ensuring that their compensation reflects their individual value to the organization. Decisions on pay raises, bonuses, and other rewards are tailored to the individual's specific achievements and the qualities they bring to their position. This can enhance employee satisfaction and retention as individuals feel that their unique contributions are recognized and rewarded appropriately.