Total

Rewards
Model
A Framework
for Strategies
to Attract,
Motivate and
Retain Employees

­­­www.worldatwork.org
1 www.worldatwork.org/totalrewards
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

 Reflects the maturity and power of the concept

 Depicts five elements that, collectively, comprise total rewards

 Provides the organizational and environmental context in which total rewards

strategies and pro­grams exist­

 A rticulates the desired outcome of attracting, motivating and retaining satisfied

Total Rewards
Strategy
= Leveraging Five Elements to
Attract, Motivate, Retain­
and engaged employees who create business performance and results
• Compensation • Work-Life •D
 evelopment
D
 emonstrates the dynamic relationship between employees and employers— • Benefits •P
 erformance and Career
the employee’s contribution of time, talent and efforts for desired and Recognition Opportunities
business results.

As the association of the profession, WorldatWork The Exchange Employer Employee

presents this model to: Relationship provides: provides:
Total rewards Time, talent,
 Represent the profession’s conceptual framework for total rewards valued by efforts and
employees results
 Serve as a tool for practitioners to use with management in their
own organizations

 Depict the official WorldatWork model of total rewards

S
 erve as a foundation and guidepost for intellectual capital
development in the profession

B
 ecome a tool for academics, consultants and others to support
Context of •B
 usiness • HR strategy •G
 eography
their intellectual capital endeavors. Total Rewards strategy (location of
•E
 xternal
• O rganizational influences workforce)
culture (competition,
industry,
regulation, etc.)

(See page 5 for model definitions.)

2 www.worldatwork.org/totalrewards WorldatWork Total Rewards Model 3

The Elements of Total Rewards Total Rewards Definitions
There are five elements of total rewards, each of which includes programs, Total Rewards
Component     Definitions
practices, elements and dimensions that collectively define an organization’s
Pay provided by an employer to an employee for services
Compensation
strategy to attract, motivate and retain employees. These elements are: rendered (i.e. time, effort and skill). Includes both fixed
and variable pay tied to levels of performance.
Compensation
The elements represent the “tool kit”
Benefits
from which an organization chooses Programs an employer uses to supplement the cash
Work-Life Benefits
to offer and align a value proposition compensation that employees receive. These health, income
protection, savings and retirement programs provide security
Performance and Recognition that creates value for both the
for employees and their families.
Development and Career Opportunities organization and the employee.

An effective total rewards strategy results in satisfied, engaged and productive

A specific set of organizational practices, policies and
Work-Life
employees, who in turn create desired business performance and results. programs, plus a philosophy, that actively supports efforts
to help employees achieve success at both work and home.

The elements, as WorldatWork has defined them, are not mutually exclusive

and are not intended to represent the ways that companies organize or deploy Performance: The alignment of organizational, team
Performance &
Recognition and individual efforts toward the achievement of business
programs and elements within them. For instance, performance management
goals and organizational success. It includes establishing
may be a compensation-function-driven activity or may be decentralized in line expectations, skill demonstration, assessment, feedback

organizations; it can be managed formally or informally. Likewise, recognition and continuous improvement.

could be considered an element of compensation, benefits and work-life. Recognition: Acknowledges or gives special attention
to employee actions, efforts, behavior or performance.
It meets an intrinsic psychological need for appreciation of

Context for Total Rew­ards one’s efforts and can support business strategy by reinforcing
certain behaviors (e.g., extraordinary accomplishments) that
contribute to organizational success. Whether formal or
The WorldatWork model recognizes that total rewards operates in the context
informal, recognition programs acknowledge employee
of overall business strategy, organizational culture and HR strategy. Indeed, contributions immediately after the fact, usually without
predetermined goals or performance levels that the employee
a company’s exceptional culture or external brand value may be considered a
is expected to achieve. Awards can be cash or noncash
critical component of the total employment value proposition. The backdrop of (e.g., verbal recognition, trophies, certificates, plaques,

the WorldatWork model is a globe, representing the external influences on a busi- dinners, tickets, etc.)

ness, such as:

Development: A set of learning experiences designed
Development and
 Legal/regulatory issues to enhance employees’ applied skills and competencies.
Career Opportunities
C
 ultural influences and practices Development engages employees to perform better
and engages leaders to advance their organizations’
 Competition
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.

For example programs and more information,

go to www.worldatwork.org/totalrewards

4 www.worldatwork.org/totalrewards WorldatWork Total Rewards Model 5

 Your Total Rewards Inventory To get a comprehensive view of your organization’s value proposition, simply
check off the rewards your organization currently provides.

Performance Development &

Compensation Benefits Work-Life & Recognition Career Opportunities

Base Wages Legally Workplace Flexibility/ D

 ependent Care Performance Learning
Travel-Related Expense
 Salary Pay Required/Mandated Alternative Work Reimbursements  1:1 Meetings Opportunities
 Unemployment Insurance
Arrangements  Performance Reviews  Tuition Reimbursement
 Hourly Pay D
 ependent Care Referral
 Worker’s Compensation  Flex-Time and Resource Services P
 roject Completion/  Tuition Discounts
 Piece Rate Pay
Insurance  Telecommuting D
 ependent Care Discount Team Evaluations  Corporate Universities
 Social Security Insurance Programs or Vouchers P
 erformance Planning/
Premium Pay  Alternative Work Sites  New Technology Training
 Medicare E
 mergency Dependent Goal Setting Sessions
 Compressed Workweek  On-the-Job Learning
 Shift Differential Pay Care Services
S
 tate Disability Insurance  Job Sharing A
 ttendance at
 Weekend/Holiday Pay (if applicable)  Childcare Subsidies Recognition
 Part-time Employment Outside Seminars
 On-call Pay O
 n-site Caregiver and Conferences
 Seasonal Schedules Support Groups  Service Awards
 Call-In Pay Health & Welfare  Retirement Awards
A
 ccess to Virtual Learning,
 On-Site Dependent Care Podcasts, Webinars
 Hazard Pay
 Medical Plan Paid and Unpaid Time Off  Adoption Assistance Services P
 eer Recognition
 Bi-Lingual Pay  Self-Development Tools
 Dental Plan Awards
 Maternity/Paternity Leave  After-School Care Programs
 Skill-Based Pay  Spot Awards
 Vision Plan
 Adoption Leave  C ollege/Scholarship Information
M
 anagerial Recognition
Coaching/
 Prescription Drug Plan
Variable Pay  Sabbaticals  Scholarships Programs Mentoring
 Flexible Spending  Privacy Rooms
Accounts (FSAs)  O rganization-wide  Leadership Training
 Commissions Recognition Programs
H
 ealth Reimbursement Health and Wellness  Summer Camps & Activities E
 xposure to Resident
 Team-Based Pay E
 xceeding Performance
Accounts (HRAs)  Special Needs Childcare Experts
 E mployee Assistance Programs Awards
H
 ealth Savings  Disabled Adult Care A
 ccess to Information
 Bonus Programs  On-site Fitness Facilities E
 mployee of the Month/
Accounts (HSAs) Networks
 Geriatric Counseling Year Awards
 Referral Bonus  Discounted Fitness Club Rates
 Mental Health Plan F
 ormal or Informal
 In-home Assessments A
 ppreciation Luncheons,
 Hiring Bonus  Weight Management Programs Mentoring Programs
 Life Insurance for Eldercare Outings, Formal Events
 Retention Bonus  S moking Cessation Assistance
 S pouse/Dependent G
 oal-Specific Awards
P
 roject Completion Life Insurance  O n-Site Massages
Financial Support (Quality, Efficiency, Advancement
Bonus Opportunities
 AD&D Insurance  S tress Management Programs Cost-Savings,
F
 inancial Planning Productivity, Safety)
 S hort-Term/Long-Term  Voluntary Immunization Clinics Services and Education  Internships
 Incentive Pay Disability Insurance E
 mployee Suggestion
 Health Screenings  Adoption Reimbursement  Apprenticeships
Programs
Short-term:  Nutritional Counseling  Transit Subsidies  Overseas Assignments
 Profit Sharing Retirement  On-Site Nurse  529 Plans  Internal Job Postings
 Individual  Defined Benefit Plan  B usiness Travel Health Services  Savings Bonds J
 ob Advancement/
Performance Based  Disability Management Promotion
 Defined Contribution Plan
Incentives
C
 areer Ladders
 Performance-
 Profit Sharing Plan  Return to Work Programs Voluntary Benefits and Pathways
Sharing Incentives  Hybrid Plan R
 eproductive Health/
Pregnancy Programs  Long Term Care  Succession Planning
Long-term:
 24-Hour Nurse Line  Auto/Home Insurance O
 n/Off Ramps through
 Restricted Stock  ay for Time
P  Pet Insurance Career Lifecycle
Not Worked  On-Site Work-Life Seminars
 Performance Shares (Stress-Reduction, Parenting, etc.)  Job Rotations
 Legal Insurance
 Performance Units  Vacation  Health Advocate  Identity Theft Insurance
 Stock Options/Grants  Holiday  Employee Discounts
 Sick Leave Community Involvement  Concierge Services
 Bereavement Leave  Parking
 C ommunity Volunteer Programs
 L eaves of Absence
(Military, Personal  Matching Gift Programs
Medical, Family Medical)  Shared Leave Programs Culture Change Initiatives
 Disaster Relief Funds  Work Redesign
 Sponsorships/Grants  Team Effectiveness
 In-Kind Donations  D iversity/Inclusion Initiatives
 Women’s Advancement Initiatives
Caring for Dependents  Work Environment Initiatives

 D ependent Care  M ultigenerational Initiatives

Reimbursement Accounts

6 7
Worldwide Headquarters Washington, D.C. Office Phone: 877-951-9191

WorldatWork & Conference Center Fax: 866-816-2962

14040 N. Northsight Blvd. 1100 13th Street, NW

Scottsdale, AZ 85260 Suite 800

Washington, D.C. 20005

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 workforce. Founded in 1955,
WorldatWork has nearly 30,000 members in
more than 100 countries. Its affiliate orga-
nization, WorldatWork Society of Certified
Professionals ®, is the certifying body for
the prestigious Cer tified Compensation
Professional ® (CCP ® ), Cer tified Benefits
Professional ® (CBP), Global Remuneration
Professional (GRP ® ), Work-Life Cer tified
Professional™ ( WLCP ® ), Cer tified Sales
Compensation Professional™ (CSCP™),
and Cer tified Executive Compensation
Professional™ (CECP™ ). Wor ldatWor k
has offices in Scottsdale, Arizona, 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.

WorldatWork Total Rewards Model 8

W57963142 10/2011