Here is SHRM’s definition: “Total Rewards refers to the design and implementation
of compensation systems and benefit packages, which employers use to attract and
retain employees.” Total rewards Includes six elements (compensation, benefits, work-life
effectiveness, recognition, performance management, and talent development)
that collectively define an organization’s strategy to attract, motivate, retain, and
engage employees.
• Approaches to gathering compensation and benefits-related market and
competitive intelligence (e.g., remuneration surveys)
• Basic accounting and financial knowledge for managing payroll (e.g., total
compensation statements)
• Compensation philosophies
• Compensation plans for common and special workforce groups (e.g., domestic,
global/expatriate, executive, sales)
• Job evaluation for determining compensation and benefits
• Leave plans and approaches (e.g., vacation, holiday, sick, paid/unpaid leave)
• Other benefits (e.g., disability, unemployment insurance, employee assistance
programs, family, flex, wellness programs)
• Other compensation (e.g., deferred compensation, direct/indirect compensation,
stock options)
• Pay practices and issues (e.g., pay increases, base pay, pay levels, banding,
variable pay)
• Remuneration and labor market data collection and interpretation
• Remuneration data analysis (e.g., comparable worth, determining compensation,
internal alignment, external competitiveness)
• Retirement planning and benefits (e.g., pension plans)
• Total rewards metrics and benchmarks
