Total Rewards
Definition
The complete mix of compensation, benefits, and non-monetary offerings employees receive in exchange for their work.
What Are Total Rewards?
Total rewards include base salary, variable pay (such as bonuses or commission), health and retirement benefits, work life balance programs, recognition, career development opportunities, and workplace culture. Together, these elements represent the full value proposition a business offers to its employees.
Why Are Total Rewards Important for Employers?
A competitive total rewards package can:
- Enhance employee attraction and retention
- Support compensation competitiveness and equity
- Align rewards with organizational goals and performance
- Drive employee engagement and motivation
FAQs
Are total rewards the same as total compensation?
No, compensation is part of total rewards, which also includes non-monetary benefits and perks.
How often should total rewards be evaluated?
Annually or in response to market changes.
Can total rewards impact employer brand?
Yes, total rewards are a core component of how employees perceive your organization.
How ExtensisHR Can Help
We help employers design competitive total rewards programs by:
- Offering access to Fortune 500-level employee benefits
- Advising on compensation and benefits benchmarking
- Supporting communication and implementation
- Guiding business leaders as they develop professional development programs