Total Rewards
Tutorial 5 – Workbook 5
What do you think having Total Rewards are important?
Employers today are acknowledging the increasingly important role of
remuneration to achieve their business goals in terms of enabling
organisation to deliver the right amount of rewards, to the right people, at
the right time, for the right reason.
Employers are also realising that rather than replicating the remuneration
practices of other companies, their remuneration strategy must be
deliberately created to support its own unique human capital strategy – that
is, the “people” side of the business.
By recognising that basic pay is not the only motivator, and acknowledging
the importance of not only tangible but also intangible rewards within the
wider context of the work experience, total rewards have wide-reaching
implications for employers and employees alike.
Total rewards are potentially very powerful in assisting employers to align
their HR and a business strategy with employee needs in order to improve
performance.
“Total rewards” is the term that has been adopted to describe a reward
strategy that brings additional components such as learning and
development, together with aspects of the working environment, into the
benefits package. It goes beyond standard remuneration by embracing the
organisational culture, and is aimed at giving all employees a voice in the
operation, with the employer in return receiving an engaged employee
performance.
Total rewards offer employers the opportunity to differentiate and create a
cultural brand, and hence competitive advantage, which is hard to replicate.
Over the years there has been compelling evidence showing that the best
way to attract, engage and retain employees is to focus on total rewards, not
just pay and benefits (WorldatWork 2007).
The prescribed textbook says that remuneration is not just the payslip that
an employee receives – but it is a holistic approach.
Total rewards are made up as follows:
Non-
Financial Total
Financial
Rewards Rewards
Rewards
, Make sure that you go to your Prescribed book and study all of section 1.5
So now we know that Total Rewards are made up of different components,
they are Financial Rewards and Non-Financial Rewards.
How would you define Total Rewards after explaining to someone the
importance of Total Rewards?
Total rewards can be defined as the monetary and non-monetary return
provided to employees in exchange for their time, talents, eff orts and
results. It involves the integration of compensation, benefits, work-life,
performance and recognition and development and career opportunities to
attract, motivate, and retain the talent required to achieve desired business
results.
The concept of total rewards therefore combines what is referred to as
“transactional rewards” (tangible rewards, including pay and benefits) and
“relational rewards” (intangible rewards such as learning and development,
recognition and status, and challenging work) (Bussin 2011:4).
A total rewards approach is holistic as reliance is not placed on one or two
reward mechanisms operating in isolation.
The aim is to maximise the combined impact that a wide range of reward
initiatives is likely to have on motivation, commitment and job engagement.
Total rewards can thus be explained as embracing everything that employees
value in the employment relationship.
Total rewards encompass pay and benefits (generally in the form of a flexible
benefits scheme), the working environment, and career and personal
development. Other examples may include:
o flexible benefits
o access to professional and career development
o a challenging role at work, freedom and autonomy at work
o opportunity for personal growth, recognition of achievements
o preferred office space
o flexible working hours
o home or tele-working
Now you should know that Total Rewards are made up of Financial and Non-
Financial Rewards. It can be monetary or non-monetary. It can be transactional or
relational rewards. Be prepared to be able to explain each of these and provide
examples from case studies if asked.
Tutorial 5 – Workbook 5
What do you think having Total Rewards are important?
Employers today are acknowledging the increasingly important role of
remuneration to achieve their business goals in terms of enabling
organisation to deliver the right amount of rewards, to the right people, at
the right time, for the right reason.
Employers are also realising that rather than replicating the remuneration
practices of other companies, their remuneration strategy must be
deliberately created to support its own unique human capital strategy – that
is, the “people” side of the business.
By recognising that basic pay is not the only motivator, and acknowledging
the importance of not only tangible but also intangible rewards within the
wider context of the work experience, total rewards have wide-reaching
implications for employers and employees alike.
Total rewards are potentially very powerful in assisting employers to align
their HR and a business strategy with employee needs in order to improve
performance.
“Total rewards” is the term that has been adopted to describe a reward
strategy that brings additional components such as learning and
development, together with aspects of the working environment, into the
benefits package. It goes beyond standard remuneration by embracing the
organisational culture, and is aimed at giving all employees a voice in the
operation, with the employer in return receiving an engaged employee
performance.
Total rewards offer employers the opportunity to differentiate and create a
cultural brand, and hence competitive advantage, which is hard to replicate.
Over the years there has been compelling evidence showing that the best
way to attract, engage and retain employees is to focus on total rewards, not
just pay and benefits (WorldatWork 2007).
The prescribed textbook says that remuneration is not just the payslip that
an employee receives – but it is a holistic approach.
Total rewards are made up as follows:
Non-
Financial Total
Financial
Rewards Rewards
Rewards
, Make sure that you go to your Prescribed book and study all of section 1.5
So now we know that Total Rewards are made up of different components,
they are Financial Rewards and Non-Financial Rewards.
How would you define Total Rewards after explaining to someone the
importance of Total Rewards?
Total rewards can be defined as the monetary and non-monetary return
provided to employees in exchange for their time, talents, eff orts and
results. It involves the integration of compensation, benefits, work-life,
performance and recognition and development and career opportunities to
attract, motivate, and retain the talent required to achieve desired business
results.
The concept of total rewards therefore combines what is referred to as
“transactional rewards” (tangible rewards, including pay and benefits) and
“relational rewards” (intangible rewards such as learning and development,
recognition and status, and challenging work) (Bussin 2011:4).
A total rewards approach is holistic as reliance is not placed on one or two
reward mechanisms operating in isolation.
The aim is to maximise the combined impact that a wide range of reward
initiatives is likely to have on motivation, commitment and job engagement.
Total rewards can thus be explained as embracing everything that employees
value in the employment relationship.
Total rewards encompass pay and benefits (generally in the form of a flexible
benefits scheme), the working environment, and career and personal
development. Other examples may include:
o flexible benefits
o access to professional and career development
o a challenging role at work, freedom and autonomy at work
o opportunity for personal growth, recognition of achievements
o preferred office space
o flexible working hours
o home or tele-working
Now you should know that Total Rewards are made up of Financial and Non-
Financial Rewards. It can be monetary or non-monetary. It can be transactional or
relational rewards. Be prepared to be able to explain each of these and provide
examples from case studies if asked.
