Creating a Total Rewards Philosophy

 

A Total Rewards Philosophy is a set of tenets about how an organization intends to reward employees and why. This includes compensation, benefits, and perks, but may also include the strategy for employee professional development and career progression. In many organizations, matters of compensation are either a mystery or incoherent, even among key staff members who make important financial decisions for the organization. Programs (or lack thereof) shrouded in secrecy or avoidance of the topic may breed distrust and confusion among staff, especially if they notice erratic and inconsistent compensation practices and promises. But an effective and wisely transparent Total Rewards Philosophy allows everyone to know where they are, what they can reach, and how the organization can support them in getting to their financial, health, and wellness goals. Most importantly, it helps position a workplace to honor this Scripture: “The worker is worthy of his wages” (1 Timothy 5:18, NKJV).