Total Rewards Packages – What You Need to Know 

Total Rewards Packages – What You Need to Know 

As the workforce becomes more competitive with millennials dominating, employers are forced to rethink their employee benefits and rewards strategies. More companies are offering total rewards packages as an incentive to bring on quality employees. But what is included in a total rewards package? 

Total rewards packages are typically made up of six components: 

Benefits 

Benefits are noncash, indirect payments received by employees in addition to their cash compensation. They can vary by company and may include life and health insurance, employee assistance programs, retirement plans and legally required benefits, such as family leave, unemployment benefits, and workers’ compensation. 

Compensation 

Compensation is basically what all employees work for – the payment they receive for the work they perform. Compensation should be competitive to both attract and retain quality workers.  

Recognition 

More than just verbal recognition, recognition programs reward effort, behavior, and performance that lead to the success of an organization. Service awards, peer recognition awards, employee-of-the-month awards and/or formal events or luncheons are acceptable ways of recognizing such accomplishments. 

Performance Management 

Performance management for employees involves setting up performance expectations and assessing that performance periodically. Additionally, feedback, ratings, and rewards for satisfactory or exemplary performances are offered.  

Work-Life Benefits 

The primary focus of the work-life aspect of total rewards packages is to maintain practices, attitudes, and policies that encourage a balance between work and home for employees. Strategies may include offering flexible work hours as well as paid time off, diversity programs, and health and wellness programs. 

Talent Development 

With talent development, employees receive the assets needed to maximize their potential while improving their skills within an organization. Such opportunities can include tuition reimbursement, leadership training, online learning, internships, coaching, promotions, and mentoring programs.