Which of the following is NOT a reason a corporation would want to incorporate individual-based pay into its total rewards system?

Incorporating individual-based pay into a total rewards system is primarily focused on directly linking compensation to individual performance, competencies, or contributions. This method emphasizes the incentives for high performers by offering them the potential for higher compensation, thus rewarding effective work and results.

The option that states "Demonstrates good faith in employees" does not inherently relate to the individual performance aspect of compensation strategies. While demonstrating good faith involves trust and mutual respect between the employer and employees, individual-based pay systems are more tactical in nature, dealing with performance appraisal and merit increases rather than purely expressing good intentions towards employees.

In contrast, the other reasons provided for individual-based pay—rewarding high performers, encouraging employee engagement and retention, and addressing market competition for talent—are directly aligned with the purpose of such a compensation strategy. They reflect how organizations use individual-based compensation to foster a meritocratic environment, thereby motivating employees to engage in their roles actively and remain with the company due to competitive rewards that acknowledge their contributions.