Total Rewards
The complete package of monetary and non-monetary benefits offered to employees.
Also: total compensation and benefits
Definition
Total Rewards is a strategic framework encompassing all financial and non-financial elements that an organization provides to attract, motivate, and retain employees. It includes base salary, variable pay, benefits, learning and development opportunities, recognition, work-life balance initiatives, and career growth. A holistic total rewards strategy recognizes that employees are motivated by more than just compensation.
Example
“The company's total rewards statement showed each employee their annual compensation, benefits, learning budget, and wellness contributions to illustrate their full value package.”
Usage Examples
- 1
“The team applied total rewards best practices to improve their compensation outcomes significantly.”
- 2
“Understanding total rewards is essential for anyone building a career in HR & People.”
When & How to Use
Use 'Total Rewards' when working in Compensation contexts where total rewards is a strategic framework encompassing all financial and non-financial elements that an organization provides to attract, motivate, and retain employees.
- ▸Applying total rewards principles during a compensation project or initiative
- ▸Explaining total rewards to a junior team member or stakeholder unfamiliar with HR & People
- ▸Evaluating options or proposals using total rewards as a decision-making criterion
Etymology & Origin
The term 'Total Rewards' derives from professional usage and entered HR & People professional usage as the field formalised in the 20th century.
History & Evolution
The concept of total rewards has evolved alongside HR & People. Early practitioners relied on informal methods; structured approaches emerged with the professionalisation of compensation in the mid-20th century. Today, total rewards is a standard part of HR & People practice globally.
Synonyms
- total compensation
- complete rewards package
- holistic rewards
- total remuneration