Total Reward is a system of benefits and perks that employers offer their employees. The entire rewards program includes salary, bonus, vacation, health benefits, and other benefits.
A Total Rewards Program is a comprehensive approach to benefits that includes everything from time off to health care. Employers usually have a Total Rewards Committee that approves all new programs, but they can also change existing programs at any time.
What is it based on?
Total Rewards are a method of rewarding employees for the work they do. It can be used to reward employees every month, or it can be used at the year's end to reward employees who have worked well over the course of the year.
Total rewards are based on several factors:
● The quality of their work
● Their attitude toward their job
● How many hours do they put in every week
● Their productivity (how much money they made)
Total Rewards Template
A total rewards template is a document that outlines the different types of compensation and benefits that an organization offers to its employees. Here is an example of a basic total rewards template:
- Base salary
- Overtime pay
- Health insurance
- Dental Insurance
- Vision insurance
- Retirement plan
- Life insurance
- Paid time off
- Disability insurance
- Employee assistance program
- Flexible work schedule
- Work-from-home options
- Employee discounts
Recognition and rewards:
- An employee of the month
- Performance awards
- Long-service awards
- Training and development opportunities
- Career growth opportunities
- Positive work-life balance
It is important to note that this is a basic template and different organizations may have different components in their total rewards package. Additionally, the specific compensation package offered to employees may depend on factors such as job level, experience, and location. Additionally, compensation packages may be subject to state and federal laws.
Categories of Total Rewards
Total rewards can be divided into base salary, performance-based pay (variable pay), and other compensation. Base salary is the amount you earn before taxes. Performance-based pay is a bonus or incentive based on your performance on the job. Other compensation includes things like paid time off and retirement plan contributions.
The two major types of total rewards are cash and non-cash compensation. The cash portion of total reward packages is often called cash incentives.
Cash incentives take an employee's base salary and add additional amounts for performance-based pay or bonuses based on specific criteria such as sales targets or customer satisfaction ratings. Non-cash compensation refers to employee benefits such as health insurance premiums, 401(k) contributions, etc., not based on any financial outcome but on meeting certain conditions.
Here is everything you need to know about Total Rewards and its examples. Moreover, a total rewards program has been proven to increase employee engagement and productivity, improve employee morale and reduce turnover.