Total Rewards can be defined as “All of the tools available to the employer that may be used to attract, motivate and retain employees. Total rewards include everything the employee perceives to be of value resulting from the employment relationship”.
There are five elements of total rewards, each of which includes programs, practices, elements and dimensions that collectively define an organization’s strategy to attract, motivate and retain employees. These elements are:
- Performance and Recognition
- Development and Career Opportunities
The elements represent the “tool kit” from which an organization chooses to offer and align a value for both the organization and the employee. The elements are not mutually exclusive. Total rewards strategy involves the art of combining the five key elements into tailored packages designed to achieve optimal engagement. An effective total rewards strategy results in satisfied, engaged and productive employees, who create desired business performance and results.
In a globalize world where local laws and regulations change constantly the impact of C&B becomes more important, so the corporate strategies and remuneration systems need to be adapted to different industries and countries in order to provide the best social and fiscal optimization possible for both the company and the employees.
What do you do in a Total Rewards role?
- Never stop learning.
- Never do exactly the same thing twice (no, not even for your annual processes such as salary reviews or bonus pay-outs).
- Creativity to design and implement solutions that will truly support your company and its employees
- Negotiate with providers to get the best conditions and prices possible for Social Benefits (Health & Life Insurance…) to all employees of the organization.
- Learn and know about Tax & Regulations in each country in order to apply the benefits in the best way for the company and employees.
- Get involved in many aspects of running the business, and through it, get real exposure to the organization, with Finance, Sales and Marketing obviously, but also with the business… and the rest of HR.
- Simulations and multiple scenarios analyses, and the legal, cost and fiscal implications of your decisions.
- At the forefront of the organization, in good times (distributing bonuses and introducing new rewards and recognition practices) and in bad times too (figuring out cost control mechanisms and redundancy plans).
- Interact with people at all levels of the organization, from the junior staff through to line managers, to top Executives and the Board members.