The WorldatWork Handbook of Compensation, Benefits & Total Rewards: A Comprehensive Guide for HR Professionals

Chapter 4. Designing a Total Rewards Program

The following six processes have been identified to assist with formulating a total rewards program.

Step 1: Analyze and Assess

The first activity involved in developing a total rewards program is to get a clear understanding of the existing situation. This involves defining the current state, inventorying current rewards, assessing the current total rewards mix in terms of both people and dollars, and listening to what current and potential employees regard as important. Collectively, this data provides critical clues that will help identify the type of rewards that best suit an organization and how to use a total rewards program to full competitive advantage.

Why Conduct an Assessment?

While a natural reaction is to jump in and get started, it is important to systematically create a total rewards program that supports an organization’s current and emerging business strategy. Why conduct an assessment?

• Avoid incomplete information. Moving too rapidly, forming assumptions too quickly, or shortchanging the process could be dangerous. Succumbing to temptations without sufficient time and effort could result in a total rewards program with limited or no long-term business strategy.

• Substantiate your position. An assessment provides the reasons why a total rewards program should be implemented and provides a framework for building a total rewards program.

• Increase credibility with management. Backup data provide the ammunition needed to sell the ...