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

Chapter 24. Culture at Work

Creating the right culture for employees is a major challenge for organizations and their leaders. However, the reward for developing a culture that employees and other key stakeholders can embrace pays big dividends for the organization. These dividends include lower job vacancy rates, reduced employee turnover, higher employee morale, enhanced public image, and increased customer loyalty.

Culture is the one component often taken for granted in an organization’s rewards program. Yet, culture provides leaders with a valuable tool to get employees and key stakeholders actively involved in the organization’s success.

Culture is also a key component of the WorldatWork Total Rewards model. Culture is an integral part of the “work-life” component that focuses on the individual needs of the employee. As part of the work-life component, culture is an important initiative in creating support for work-life programs. Culture is also a determinant of how well unique programs, such as diversity education, women’s advancement, and mentoring, will be received.

Organizational culture is also one of the three key drivers of the total rewards strategy. As a key driver, organizational culture impacts how new total rewards programs will be received and integrated into the organization. When crafting a total rewards strategy, it is imperative that organizational culture be addressed before deciding what total rewards programs to offer.

Culture also has a major impact on all ...