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A business implements the strategy of total rewards when it proposes beneficial, developmental, and monetary rewards to employees for their achievement of specific business goals. This strategy integrates benefits and compensation with many personal growth opportunities within motivated work surroundings. 

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What do Total Rewards Comprise?

Total rewards are the integration of rewards, compensation, and benefits that an employee receives from his organization. It comprises bonuses and wages, recognition, career opportunities, and workplace flexibility. 


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Again, total rewards are also referred to the department in Human Resources that deals with benefits and compensation. At times, it is the integrated extrinsic and intrinsic rewards that employees perceive.

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The Strategy of Total Rewards

To develop the strategy of total rewards, you need to know about the four-step process like:

Assessment – The job of the project team is to assess employees’ compensation systems and benefits before determining the effectiveness of these systems. It helps an organization in reaching its goals. Some activities that happen during the assessment period of the process comprise surveying the employees regarding their beliefs and opinions, opportunities and benefits for development and growth, and testing the current practices and policies.

Design – A senior management team recognizes and analyzes different reward policies for determining what would work the best in its workplace. This decides what would be rewarded besides the rewards that the employees would receive for their achievements. HR strategists too determine some additional benefits, like additional time off or flexible work schedule that employees can enjoy for meeting the objectives of an established company.

Execution – The Human Resources department implements a new rewards system, and it circulates components that communicate fresh strategies to employees. Again, training also commences making it easier for decision-makers and managers to measure the achievement effectively.

Evaluation – Every new plan should be measured well for its effectiveness, and its outcomes must be communicated to the decision-makers of the company. After this, modifications can be recommended for future implementation.

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Elements of the Total Rewards System

  • Salaries and wages – In a total rewards model, compensation gets viewed holistically and it includes the base salary and other kinds of compensation that inspire employees to give their best performance.
  • Some additional benefits – In the framework of total rewards, employees might look forward to offering benefits that cross the lawful mandate of Medicare, Social Security insurance, worker’s compensation insurance, unemployment insurance, and state disability insurance.
  • Work-life balance – A person’s work environment must endorse a healthy balance between personal time and time. When employers form an atmosphere that can recognize the needs of their employees to possess a work schedule that would permit them to get sufficient rest, they foster improved morale.

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