Definition of cipd total rewards

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Definition of cipd total rewards
When employers recognise the value of intangible rewards, employee performance improves. (handshake image by Du...¡an Zidar from

The concept of total rewards, as conceptualised by the Chartered Institute of Personnel and Development (CIPD), recognises the value of intangible forms of remuneration. Training and development opportunities can act as employee motivation when properly promoted by the employer.

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A number of different employee rewards programs exist. Companies share their success in financial rewards through the holistic approach, while HR policy rewards employees through the integrative approach. Managers use objectives and goals to design rewards in the strategic approach; the employee's stage in life and lifestyle form the basis for the customised approach. Incremental development of a reward system is used in the developmental approach. These and other innovative approaches can maximise the effects of rewards programs.


The use of varied rewards has become increasingly important as workforces become more diversified. Members of this diverse workforce seek different rewards from a job. Traditional rewards such as stock options have become less attractive. While exciting, attractive surroundings on the job may motivate some employees; this and other rewards can be offset by the lack of lifetime job security.


CIPD must be part of a developing management practice that includes reward management and company culture. Two vital components are line management behaviour and employee empowerment. Both are necessary for the success of the program.

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