What are total rewards?

Total rewards

Total rewards encompass a wide range of compensation, benefits and rewards that employers offer their employees. Here's a breakdown of some of the key components of total rewards:

  • Compensation: This includes base salary, bonuses, commissions, profit-sharing, and any other direct financial payments employees receive or have the potential to earn.
  • Benefits: These are non-wage perks provided by the employer, such as health insurance, life insurance, retirement plans, disability insurance, and paid time off (PTO).
  • Career development: Opportunities for growth and advancement within the company, including mentoring programs, career planning resources, training initiatives, and tuition reimbursement.
  • Recognition and rewards: Formal or informal acknowledgments of achievements and contributions, such as awards, employee recognition programs, and performance-based incentives.
  • Work-life balance: Initiatives aimed at promoting a healthy balance between work and personal life, such as flexible work schedules, parental leave policies, and employee support services.
  • Work environment: Factors that contribute to a positive workplace culture and employee engagement, including inclusive policies, team-building activities, and wellness programs.

By offering a comprehensive total rewards package, you can attract top talent, enhance employee satisfaction and retention, and create a supportive and motivating work environment.

What is a total rewards program?

A total rewards program is the specific strategy a business implements to compensate and motivate their employees. Incorporating a total rewards program is designed to benefit the workers first, but it can also benefit the company. It’s an effective strategy for creating a motivated and engaged workforce, ultimately contributing to long-term success. 

Attract and retain top talent

A total rewards program that offers competitive compensation, attractive benefits, and opportunities for career growth helps attract high-caliber candidates and retain valuable employees. It positions your company as an employer of choice in a competitive job market.

Enhance employee engagement

By recognizing and rewarding employees for their contributions, a total rewards program boosts engagement. Employees who feel valued and appreciated are more motivated, committed, loyal, and productive.

Foster a positive work culture

Total rewards programs contribute to a positive work environment by promoting fairness, transparency, and recognition. Making opportunities for collaboration and recognition more visible encourages teamwork, collaboration, and a sense of shared accomplishment.

Increase employee productivity

When employees are satisfied with their compensation and benefits, they are more likely to be productive and efficient. A well-designed total rewards program aligns employee efforts with company goals.

Support employee well-being

Total rewards encompass not only financial rewards but also health and wellness benefits. By offering comprehensive healthcare coverage, work-life balance initiatives, and employee assistance programs, companies can support their employees' physical and mental well-being. These benefits are more than just perks: They can also help reduce absenteeism and boost productivity. 

What are total rewards statements?

Total rewards statements provide a comprehensive overview of a compensation package, beyond salary. 

These personalized statements outline the various components of total rewards, including base pay, bonuses, incentives, benefits, and other perks. By presenting this information in a transparent and easy-to-understand format, total rewards statements help you recognize the complete value of compensation, fostering a sense of appreciation and engagement. 

A total rewards statement will also help you understand all expenses associated with maintaining your workforce. 

Total rewards software

Total rewards software provides employers with a comprehensive platform to manage and optimize employee compensation and benefits packages. This software streamlines the process of administering and communicating total rewards. 

Here are some key benefits:

  • Enhanced visibility: Employers and employees will gain a clear and detailed view of total rewards, including salary, bonuses, incentives, and benefits.
  • Personalized statements: Access individualized total rewards statements that showcase the full value of a compensation package.
  • Real-time updates: Employees can stay informed about any changes or updates to rewards.
  • Benefit selection: Simple comparison and selection of benefits that align with needs and preferences.
  • Transparency: Promote transparency by enabling employees to understand and appreciate the full range of rewards offered by the organization.

About Oyster

Oyster is a global employment platform designed to enable visionary HR leaders to find, hire, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.

Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.