A cost-pressed organization can redesign its reward structure by (1) instituting a two-tier wage system for new hires, (2) shifting part of fixed salary to variable, at-risk pay, and (3) replacing across-the-board merit increases with one-time lump-sum bonuses. All three directly change how compensation is delivered and immediately lower ongoing payroll liabilities.

A. Market analysis studies external rates; it does not modify the reward structure itself.

B. Market analysis is diagnostic, not a structural change; only two of the three elements alter rewards.

D. A hiring freeze is a staffing action, not a reward-structure modification; only two items relate to rewards.

1. Milkovich, G., Newman, J., & Gerhart, B. Compensation (13th ed.), Ch. 12, pp. 368-372 – variable pay and lump-sum bonuses for cost control.

2. Armstrong, M. Handbook of Reward Management Practice (6th ed.), Sec. 17.3, pp. 503-506 – two-tier wage plans as a recession response.

3. WorldatWork. “Variable Pay Fundamentals,” 2020, pp. 4-6 – replacing fixed pay with variable to reduce fixed costs.