Discussion #1 After reviewing all the material for the week, share in your own words (with at least two in-text citations to indicate the origin of your information), the meaning of the concept of Total Rewards, describe how it differs from the traditional approach to compensation, and why this difference matters to HRM decision-making. Use a minimum of two references from the class materials.
Discussion #2 Define and provide an example for each of the following: demographic shifts, globalization, technology, competitive forces. Based on your reading, how would you describe their impact on total rewards? Provide at least one reference from class materials and don’t forget to use in-text citations. .
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Discussion #3 Provide an example (either from the organization where you work or one that you know) that demonstrates the critical link between strategic objectives and rewards. Use at least one reference from class materials
1 www.worldatwork.org/totalrewards
www.worldatwork.org
Total
Rewards
Model
A Framework
for Strategies
to Attract,
Motivate and
Retain Employees
WorldatWork Total Rewards Model 32 www.worldatwork.org/totalrewards
â¢
Compensation
â¢
Benefits
â¢
Work-Life
⢠Performance
and Recognition
⢠Development
and Career
Opportunities
= Leveraging Five Elements to
Attract, Motivate, Retain
⢠Business
strategy
⢠Organizational
culture
⢠HR strategy
⢠External
influences
(competition,
industry,
regulation, etc.)
⢠Geography
(location of
workforce)
Context of
Total Rewards
Employee
provides:
Time, talent,
efforts and
results
Employer
provides:
Total rewards
valued by
employees
The Exchange
Relationship
Total Rewards
Strategy
Dedicated to Knowledge Leadership
in Total Rewards
During the past several years, the concept of total rewards has advanced
considerably. Practitioners have experienced the power of leveraging multiple
factors to attract, motivate and retain talent; high-performing companies
realize that their proprietary total rewards programs allow them to excel
in new ways.
At the same time, human resource professionals, consulting firms, service
providers and academic institutions have made significant contributions
to our understanding of total rewards.
The WorldatWork Total Rewards Model
ï® Reflects the maturity and power of the concept
ï® Depicts five elements that, collectively, comprise total rewards
ï® Provides the organizational and environmental context in which total rewards
strategies and pro grams exist
ï® Articulates the desired outcome of attracting, motivating and retaining satisfied
and engaged employees who create business performance and results
ï® Demonstrates the dynamic relationship between employees and employersâ
the employeeâs contribution of time, talent and efforts for desired
business results.
As the association of the profession, WorldatWork
presents this model to:
ï® Represent the professionâs conceptual framework for total rewards
ï® Serve as a tool for practitioners to use with management in their
own organizations
ï® Depict the official WorldatWork model of total rewards
ï® Serve as a foundation and guidepost for intellectual capital
development in the profession
ï® Become a tool for academics, consultants and others to support
their intellectual capital endeavors.
(See page 5 for model definitions.)
WorldatWork Total Rewards Model 54 www.worldatwork.org/totalrewards
Pay provided by an employer to an employee for services
rendered (i.e. time, effort and skill). Includes both fixed
and variable pay tied to levels of performance.
Programs an employer uses to supplement the cash
compensation that employees receive. These health, income
protection, savings and retirement programs provide security
for employees and their families.
A specific set of organizational practices, policies and
programs, plus a philosophy, that actively supports efforts
to help employees achieve success at both work and home.
Performance: The alignment of organizational, team
and individual efforts toward the achievement of business
goals and organizational success. It includes establishing
expectations, skill demonstration, assessment, feedback
and continuous improvement.
Recognition: Acknowledges or gives special attention
to employee actions, efforts, behavior or performance.
It meets an intrinsic psychological need for appreciation of
oneâs efforts and can support business strategy by reinforcing
certain behaviors (e.g., extraordinary accomplishments) that
contribute to organizational success. Whether formal or
informal, recognition programs acknowledge employee
contributions immediately after the fact, usually without
predetermined goals or performance levels that the employee
is expected to achieve. Awards can be cash or noncash
(e.g., verbal recognition, trophies, certificates, plaques,
dinners, tickets, etc.)
Development: A set of learning experiences designed
to enhance employeesâ applied skills and competencies.
Development engages employees to perform better
and engages leaders to advance their organizationsâ
people strategies.
Career Opportunities: Involve the plan for employees to
advance their career goals. May include advancement into
a more responsible position in an organization. The company
supports career opportunities internally so that talented
employees are deployed in positions that enable them
to deliver their greatest value to the organization.
Total Rewards Definitions
Total Rewards
Component Definitions
For example programs and more information,
go to www.worldatwork.org/totalrewards
Compensation
Benefits
Work-Life
Development and
Career Opportunities
Performance &
Recognition
The Elements of Total Rewards
There are five elements of total rewards, each of which includes programs,
practices, elements and dimensions that collectively define an organizationâs
strategy to attract, motivate and retain employees. These elements are:
The elements represent the âtool kitâ
from which an organization chooses
to offer and align a value proposition
that creates value for both the
organization and the employee.
An effective total rewards strategy results in satisfied, engaged and productive
employees, who in turn create desired business performance and results.
The elements, as WorldatWork has defined them, are not mutually exclusive
and are not intended to represent the ways that companies organize or deploy
programs and elements within them. For instance, performance management
may be a compensation-function-driven activity or may be decentralized in line
organizations; it can be managed formally or informally. Likewise, recognition
could be considered an element of compensation, benefits and work-life.
Context for Total Rew ards
The WorldatWork model recognizes that total rewards operates in the context
of overall business strategy, organizational culture and HR strategy. Indeed,
a companyâs exceptional culture or external brand value may be considered a
critical component of the total employment value proposition. The backdrop of
the WorldatWork model is a globe, representing the external influences on a busi-
ness, such as:
ï® Legal/regulatory issues
ï® Cultural influences and practices
ï® Competition
Compensation
Benefits
Work-Life
Performance and Recognition
Development and Career Opportunities
6 7
To get a comprehensive view of your organizationâs value proposition, simply
check off the rewards your organization currently provides.
Development &
Career Opportunities
Learning
Opportunities
ï¨ Tuition Reimbursement
ï¨ Tuition Discounts
ï¨ Corporate Universities
ï¨ New Technology Training
ï¨ On-the-Job Learning
ï¨ Attendance at
Outside Seminars
and Conferences
ï¨ Access to Virtual Learning,
Podcasts, Webinars
ï¨ Self-Development Tools
Coaching/
Mentoring
ï¨ Leadership Training
ï¨ Exposure to Resident
Experts
ï¨ Access to Information
Networks
ï¨ Formal or Informal
Mentoring Programs
Advancement
Opportunities
ï¨ Internships
ï¨ Apprenticeships
ï¨ Overseas Assignments
ï¨ Internal Job Postings
ï¨ Job Advancement/
Promotion
ï¨ Career Ladders
and Pathways
ï¨ Succession Planning
ï¨ On/Off Ramps through
Career Lifecycle
ï¨ Job Rotations
Performance
ï¨ 1:1 Meetings
ï¨ Performance Reviews
ï¨ Project Completion/
Team Evaluations
ï¨ Performance Planning/
Goal Setting Sessions
Recognition
ï¨ Service Awards
ï¨ Retirement Awards
ï¨ Peer Recognition
Awards
ï¨ Spot Awards
ï¨ Managerial Recognition
Programs
ï¨ Organization-wide
Recognition Programs
ï¨ Exceeding Performance
Awards
ï¨ Employee of the Month/
Year Awards
ï¨ Appreciation Luncheons,
Outings, Formal Events
ï¨ Goal-Specific Awards
(Quality, Efficiency,
Cost-Savings,
Productivity, Safety)
ï¨ Employee Suggestion
Programs
Performance
& Recognition
Your Total Rewards Inventory
Compensation
Base Wages
ï¨ Salary Pay
ï¨ Hourly Pay
ï¨ Piece Rate Pay
Premium Pay
ï¨ Shift Differential Pay
ï¨ Weekend/Holiday Pay
ï¨ On-call Pay
ï¨ Call-In Pay
ï¨ Hazard Pay
ï¨ Bi-Lingual Pay
ï¨ Skill-Based Pay
Variable Pay
ï¨ Commissions
ï¨ Team-Based Pay
ï¨ Bonus Programs
ï¨ Referral Bonus
ï¨ Hiring Bonus
ï¨ Retention Bonus
ï¨ Project Completion
Bonus
ï¨ Incentive Pay
Short-term:
ï¨ Profit Sharing
ï¨ Individual
Performance Based
Incentives
ï¨ Performance-
Sharing Incentives
Long-term:
ï¨ Restricted Stock
ï¨ Performance Shares
ï¨ Performance Units
ï¨ Stock Options/Grants
Benefits
Legally
Required/Mandated
ï¨ Unemployment Insurance
ï¨ Workerâs Compensation
Insurance
ï¨ Social Security Insurance
ï¨ Medicare
ï¨ State Disability Insurance
(if applicable)
Health & Welfare
ï¨ Medical Plan
ï¨ Dental Plan
ï¨ Vision Plan
ï¨ Prescription Drug Plan
ï¨ Flexible Spending
Accounts (FSAs)
ï¨ Health Reimbursement
Accounts (HRAs)
ï¨ Health Savings
Accounts (HSAs)
ï¨ Mental Health Plan
ï¨ Life Insurance
ï¨ Spouse/Dependent
Life Insurance
ï¨ AD&D Insurance
ï¨ Short-Term/Long-Term
Disability Insurance
Retirement
ï¨ Defined Benefit Plan
ï¨ Defined Contribution Plan
ï¨ Profit Sharing Plan
ï¨ Hybrid Plan
Pay for Time
Not Worked
ï¨ Vacation
ï¨ Holiday
ï¨ Sick Leave
ï¨ Bereavement Leave
ï¨ Leaves of Absence
(Military, Personal
Medical, Family Medical)
Work-Life
Workplace Flexibility/
Alternative Work
Arrangements
ï¨ Flex-Time
ï¨ Telecommuting
ï¨ Alternative Work Sites
ï¨ Compressed Workweek
ï¨ Job Sharing
ï¨ Part-time Employment
ï¨ Seasonal Schedules
Paid and Unpaid Time Off
ï¨ Maternity/Paternity Leave
ï¨ Adoption Leave
ï¨ Sabbaticals
Health and Wellness
ï¨ Employee Assistance Programs
ï¨ On-site Fitness Facilities
ï¨ Discounted Fitness Club Rates
ï¨ Weight Management Programs
ï¨ Smoking Cessation Assistance
ï¨ On-Site Massages
ï¨ Stress Management Programs
ï¨ Voluntary Immunization Clinics
ï¨ Health Screenings
ï¨ Nutritional Counseling
ï¨ On-Site Nurse
ï¨ Business Travel Health Services
ï¨ Disability Management
ï¨ Return to Work Programs
ï¨ Reproductive Health/
Pregnancy Programs
ï¨ 24-Hour Nurse Line
ï¨ On-Site Work-Life Seminars
(Stress-Reduction, Parenting, etc.)
ï¨ Health Advocate
Community Involvement
ï¨ Community Volunteer Programs
ï¨ Matching Gift Programs
ï¨ Shared Leave Programs
ï¨ Disaster Relief Funds
ï¨ Sponsorships/Grants
ï¨ In-Kind Donations
Caring for Dependents
ï¨ Dependent Care
Reimbursement Accounts
ï¨ Dependent Care
Travel-Related Expense
Reimbursements
ï¨ Dependent Care Referral
and Resource Services
ï¨ Dependent Care Discount
Programs or Vouchers
ï¨ Emergency Dependent
Care Services
ï¨ Childcare Subsidies
ï¨ On-site Caregiver
Support Groups
ï¨ On-Site Dependent Care
ï¨ Adoption Assistance Services
ï¯ After-School Care Programs
ï¨ College/Scholarship Information
ï¨ Scholarships
ï¨ Privacy Rooms
ï¨ Summer Camps & Activities
ï¨ Special Needs Childcare
ï¨ Disabled Adult Care
ï¨ Geriatric Counseling
ï¨ In-home Assessments
for Eldercare
Financial Support
ï¨ Financial Planning
Services and Education
ï¨ Adoption Reimbursement
ï¨ Transit Subsidies
ï¨ 529 Plans
ï¨ Savings Bonds
Voluntary Benefits
ï¨ Long Term Care
ï¨ Auto/Home Insurance
ï¨ Pet Insurance
ï¨ Legal Insurance
ï¨ Identity Theft Insurance
ï¨ Employee Discounts
ï¨ Concierge Services
ï¨ Parking
Culture Change Initiatives
ï¨ Work Redesign
ï¨ Team Effectiveness
ï¨ Diversity/Inclusion Initiatives
ï¨ Womenâs Advancement Initiatives
ï¯ Work Environment Initiatives
ï¯ Multigenerational Initiatives
WorldatWork Total Rewards Model 8
Worldwide Headquarters
WorldatWork
14040 N. Northsight Blvd.
Scottsdale, AZ 85260
Washington, D.C. Office
& Conference Center
1100 13th Street, NW
Suite 800
Washington, D.C. 20005
Phone: 877-951-9191
Fax: 866-816-2962
About WorldatWork®
The Total Rewards Association
WorldatWork (www.worldatwork.org) is a not-
for-profit organization providing education,
conferences and research focused on global
human resources issues including compen-
sation, benefits, work-life and integrated
total rewards to attract, motivate and retain
a talented work force. Founded in 1955,
WorldatWork has nearly 30,000 members in
more than 100 countries. Its affiliate orga-
nization, WorldatWork Society of Cer tified
Professionals®, is the cer tif ying body for
the p r e s tig iou s C e r tif ie d C omp e ns ation
Pr ofe s siona l ® (CCP ®), Ce r tif ie d B e nef it s
Professional® (CBP), Global Remuneration
Pr ofes siona l (GRP ®), Wor k- Life Cer tifie d
Pr ofe s s iona l⢠( WLCP ®), C e r tif ie d S a le s
C o m p e n s a t i o n Pr o fe s s i o n a l⢠(C S C P⢠),
a n d C e r t i f i e d E xe c u t i ve C o m p e n s a t i o n
P r o f e s s i o n a l⢠( C E C P⢠) . Wo r l d a t Wo r k
has of fices in Scot tsdale, A r izona , and
Washington, D.C.
The WorldatWork group of registered marks
includes: Alliance for Work-Life Progress® or
AWLP®, workspan®, WorldatWork® Journal,
and Compensation Conundrum®.
www.worldatwork.org
©2011 WorldatWork. Not to be reproduced in
any form without express written permission
from WorldatWork.
W57963142 10/2011
