The total rewards concept defined

|CHRR, Report on Total Rewards|Last Updated: 10/20/2006

Pay. Benefits. Training and development. Pensions. The work environment. Employee assistance plans. These are just some of the things an employer offers up to employees as remuneration for the work they do.

Over the years different phrases have been used to describe this lump of offerings. Compensation. Total compensation. Pay and benefits. According to Jim Stoeckmann, senior practice leader at WorldatWork, a professional organization serving North American compensation professionals based in Scottsdale, Ariz., the term “total rewards” entered the HR department’s lexicon in the late 1980s.

At its inception, it might have seemed like the latest HR buzzword. A phrase that, in some employees’ eyes, is full of sound and fury, yet signifying nothing. Handled wrong by an organization, it can be just that.