6.1. Total Rewards Defined
At the broadest level, total rewards can be described as an exchange of payment from an employer for the services provided by its employees. Also referred to as total compensation or the compensation package, in today's global economy a competitive TR program is vital to attracting, retaining, and motivating employees. In many organizations, TR costs are the single largest operating expense and therefore an extremely important component of the human resource program. A TR package includes all forms of rewards, which are generally categorized into one of two components: monetary and nonmonetary compensation. Let's look now at what goes into each of these components:
Monetary compensation includes ...