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
and engaged employees who create business performance and results

Total Rewards
Strategy

D
 emonstrates the dynamic relationship between employees and employers
the employees contribution of time, talent and efforts for desired
business results.

As the association of the profession, WorldatWork

presents this model to:

The Exchange
Relationship

Represent the professions conceptual framework for total rewards

Serve as a tool for practitioners to use with management in their
own organizations

Leveraging Five Elements to

Attract, Motivate, Retain

Compensation

Work-Life

Benefits

P
 erformance
and Recognition

D
 evelopment
and Career
Opportunities

Employer
provides:

Employee
provides:

Total rewards
valued by
employees

Time, talent,
efforts and
results

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
their intellectual capital endeavors.

Context of
Total Rewards

B
 usiness
strategy
O rganizational
culture

HR strategy
E
 xternal
influences
(competition,
industry,
regulation, etc.)

G
 eography
(location of
workforce)

(See page 5 for model definitions.)

www.worldatwork.org/totalrewards

WorldatWork Total Rewards Model

The Elements of Total Rewards

Total Rewards Definitions

There are five elements of total rewards, each of which includes programs,

Total Rewards
Component

practices, elements and dimensions that collectively define an organizations

strategy to attract, motivate and retain employees. These elements are:

Definitions

Compensation

Pay provided by an employer to an employee for services

rendered (i.e. time, effort and skill). Includes both fixed
and variable pay tied to levels of performance.

Compensation
Benefits
Work-Life

The elements represent the tool kit

from which an organization chooses
to offer and align a value proposition

Performance and Recognition

that creates value for both the

Development and Career Opportunities

organization and the employee.

Benefits

compensation that employees receive. These health, income

protection, savings and retirement programs provide security
for employees and their families.

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

employees, who in turn create desired business performance and results.

Programs an employer uses to supplement the cash

Work-Life

A specific set of organizational practices, policies and

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
programs and elements within them. For instance, performance management

Performance &
Recognition

Performance: The alignment of organizational, team

and individual efforts toward the achievement of business
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

ones 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 companys 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 and
Career Opportunities

Legal/regulatory issues

Development: A set of learning experiences designed

to enhance employees applied skills and competencies.
Development engages employees to perform better

C
 ultural influences and practices

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

Your Total Rewards Inventory

Compensation

Base Wages

Workplace Flexibility/
Alternative Work
Arrangements

Salary Pay
Hourly Pay

Unemployment Insurance

Piece Rate Pay

Workers Compensation
Insurance

Flex-Time

Social Security Insurance

Alternative Work Sites

Medicare

Compressed Workweek

S
 tate Disability Insurance
(if applicable)

Job Sharing

Shift Differential Pay

Weekend/Holiday Pay
On-call Pay
Call-In Pay
Hazard Pay
Bi-Lingual Pay
Skill-Based Pay

Variable Pay
Commissions
Team-Based Pay

Bonus Programs
Referral Bonus
Hiring Bonus
Retention Bonus
P
 roject Completion
Bonus

Health & Welfare

Medical Plan
Dental Plan
Vision Plan
Prescription Drug Plan
Flexible Spending
Accounts (FSAs)
H
 ealth Reimbursement
Accounts (HRAs)
H
 ealth Savings
Accounts (HSAs)
Mental Health Plan
Life Insurance
S pouse/Dependent
Life Insurance

Performance
& Recognition

Work-Life

Benefits

Legally
Required/Mandated

Premium Pay

To get a comprehensive view of your organizations value proposition, simply

check off the rewards your organization currently provides.

Telecommuting

Part-time Employment
Seasonal Schedules

D
 ependent Care
Travel-Related Expense
Reimbursements

Performance
1:1 Meetings

Learning
Opportunities

D
 ependent Care Referral
and Resource Services

Performance Reviews

Tuition Reimbursement

P
 roject Completion/
Team Evaluations

Tuition Discounts

P
 erformance Planning/
Goal Setting Sessions

New Technology Training

Recognition

A
 ttendance at
Outside Seminars
and Conferences

D
 ependent Care Discount
Programs or Vouchers
E
 mergency Dependent
Care Services
Childcare Subsidies
O
 n-site Caregiver
Support Groups

Service Awards

On-Site Dependent Care

Retirement Awards

Paid and Unpaid Time Off

Adoption Assistance Services

Maternity/Paternity Leave

After-School Care Programs

P
 eer Recognition
Awards

Adoption Leave

C ollege/Scholarship Information

Sabbaticals

Scholarships
Privacy Rooms

Health and Wellness

E mployee Assistance Programs
On-site Fitness Facilities
Discounted Fitness Club Rates
Weight Management Programs

Summer Camps & Activities

Special Needs Childcare
Disabled Adult Care

Spot Awards

On-the-Job Learning

A
 ccess to Virtual Learning,
Podcasts, Webinars
Self-Development Tools

Coaching/
Mentoring

O rganization-wide
Recognition Programs

Leadership Training

E
 xceeding Performance
Awards
E
 mployee of the Month/
Year Awards

In-home Assessments
for Eldercare

A
 ppreciation Luncheons,
Outings, Formal Events

Financial Support

Corporate Universities

M
 anagerial Recognition
Programs

Geriatric Counseling

S moking Cessation Assistance

O n-Site Massages

Development &
Career Opportunities

E
 xposure to Resident
Experts
A
 ccess to Information
Networks
F
 ormal or Informal
Mentoring Programs

G
 oal-Specific Awards
(Quality, Efficiency,
Cost-Savings,
Productivity, Safety)

Advancement
Opportunities

E
 mployee Suggestion
Programs

Apprenticeships

AD&D Insurance

S tress Management Programs

S hort-Term/Long-Term
Disability Insurance

Voluntary Immunization Clinics

F
 inancial Planning
Services and Education

Health Screenings

Adoption Reimbursement

Nutritional Counseling

Transit Subsidies

Overseas Assignments

On-Site Nurse

529 Plans

Internal Job Postings

Defined Benefit Plan

B usiness Travel Health Services

Savings Bonds

Defined Contribution Plan

Disability Management

J
 ob Advancement/
Promotion

Profit Sharing Plan

Return to Work Programs

Voluntary Benefits

Hybrid Plan

R
 eproductive Health/
Pregnancy Programs

C
 areer Ladders
and Pathways

Long Term Care

Succession Planning

Auto/Home Insurance

On-Site Work-Life Seminars

(Stress-Reduction, Parenting, etc.)

Pet Insurance

O
 n/Off Ramps through
Career Lifecycle

Performance Shares

 ay for Time
P
Not Worked

24-Hour Nurse Line

Legal Insurance

Job Rotations

Performance Units

Vacation

Health Advocate

Identity Theft Insurance

Stock Options/Grants

Holiday

Incentive Pay
Short-term:
Profit Sharing
Individual
Performance Based
Incentives
PerformanceSharing Incentives

Retirement

Long-term:
Restricted Stock

Sick Leave
Bereavement Leave
L eaves of Absence
(Military, Personal
Medical, Family Medical)

Internships

Employee Discounts

Community Involvement

Concierge Services

C ommunity Volunteer Programs

Parking

Matching Gift Programs

Shared Leave Programs

Culture Change Initiatives

Disaster Relief Funds

Work Redesign

Sponsorships/Grants

Team Effectiveness

In-Kind Donations

D iversity/Inclusion Initiatives
Womens Advancement Initiatives

Caring for Dependents

Work Environment Initiatives

D ependent Care
Reimbursement Accounts

M ultigenerational Initiatives

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 notfor-profit organization providing education,

conferences and research focused on global
human resources issues including compensation, 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 organization, 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

W57963142 10/2011