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What Is Total Rewards?

Updated April 17, 2017

Total Rewards is a business strategy that enables employers to attract, motivate, and retain employees. Total Rewards goes far beyond simple compensation and attempts to provide the employee with a more fulfilling work experience.

Definitions

To the employee, Total Rewards is everything of value resulting from the relationship with the employer, including all monetary and non-monetary considerations.

Features

The Total Reward approach focuses on five specific components: compensation; benefits; work experience; performance and recognition; and development and career opportunities.

Benefits

Employees working for a Total Rewards employer tend to be more motivated, productive, and happy. As a result, the business thrives. The goal is for motivation to drive organizational success.

Retention and Recruitment

Another goal of Total Rewards is to retain valued employees' services, while at the same time providing an attractive opportunity for future employees.

History

The Total Rewards concept emerged during the 1990s, with small start-ups and flexible companies implementing the practice long before major corporations.

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About the Author

William Lynch has been a freelance writer for the past fifteen years, working for various web sites and publications. He is currently enrolled in a Master of Arts program in writing popular fiction at Seton Hill University. He hopes to one day become a mystery novelist.