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Total Rewards and Compensation
Alicia A. Allen
Department of HR, Davenport University
HRMG 700: HR Management
Dr. Bill Powers
October 14, 2020
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Abstract
This text is going to teach you all about total rewards and compensation benefits for employees
or for the organization in general. Working where I do now, we have total rewards benefits, and
different compensation tiers. I want to be able to understand all of this and make sure I’m getting
the full benefits I can while knowing where things go and what different aspects do. Researching
these aspects will teach me a lot about not only my organization, but how this world works and
what the best benefits are. Some of the major trends and aspects that I have researched will not
only help review different employment views but also the views on how employees feel that they
should be treated by an organization or what they should get. Some of the things you will see
have to deal with; health insurance, paid time off, and other small little leniencies that you
wouldn’t have thought of.
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Total Rewards and Compensation
“Total rewards programs effectively attract, retain, and engage talent – but only when
they’re communicated strategically” (n.a.). There are a lot of individuals out there, including
myself, that gets attracted by little things such as this. I want my organization to value me, and
want me to work there. I don’t want to be just another fly on the wall, being used so they can
keep their numbers good. Organizations that don’t care about their employees always seem to
have a high turnover rate. The lower turnover rate we have, the better it shows for people that
apply to be part of that organization and that want to keep working and growing for them.
Rewards and compensation is a very important part in the world today. When people are looking
into jobs they make sure they have good health care and paid time off. While I’m looking into
the HR field, I would like to know more about this aspect as my organization has it and works
closely with it. Trying to figure out what’s the best fit, and what kind of rewards go here and
when they come out. Compared to a compensation benefit or rate and when is the best time for
those to become active as well. There are a few differences between total rewards and total
compensation.
Total compensation is a way to communicate the value of employment to their
employees. This is never used alone because it’s hard to communicate to the fullest potential
value. Normally compensation only covers; bonuses, base pay, and equity. They are never the
same in each organization but there are core components that all the organizations need to follow
or focus on for it to be effective. “Total rewards consist of everything that total compensation
covers (base pay, bonuses, and equity), as well as much more. Your total rewards program can
encompass medical, dental, vision, and other health-related benefits, as well as any other
employee perks you may offer” (VanOrnum, 2017). Another thing that total rewards has or
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offers that total compensation doesn’t is a retirement plan; whether it be a 401(k) or a 403(b),
short-term disability, long-term disability, vacation, and travel compensation if work travel is
required.
Total rewards and compensation can definitely advance the work place and the culture in
the work place. I feel one big aspect of having good rewards and compensation is that the work
place seems for upbeat and lively. People are all around happier to be employed at an
organization with this. There are companies out there that feel they are paying their employees
correctly, and the employees thing otherwise. From an article I read by Sonya Clark, “44% of
companies think their employees are fairly paid, while only 20% of employees said they feel the
same way.” That’s a 22% difference, which could lead you to lose hard working people as your
employees. Employee recognition and employee engagement is becoming a big challenge in the
