2.

What is “total rewards” and what are the typical pitfalls

and success factors of a reward strategy?

Success Factors of Pitfalls of reward

reward strategy strategy
• Base pay addresses employee  Due to budgetary constraints,
basic needs by providing the company’s total reward
minimum level of income program may lag the market. Benefits
security (meeting employee’s This might result in
security and safety needs) for employees not being
sustained task motivation attracted and retained in the Perform
• The intangible rewards and organization Compen ance
recognition program motivate sation Develop
the employees to enhance  To increase competition and ment
their performance hamper group performance,
• Performance management individuals focus on earning
helps in connecting the individual benefits and
employee performance rewards contained in a total
Career
directly to the pay they rewards program Work
Opportu
receive. This provides the Life
employees with clear career  A total rewards program can nities
trajectories be costly and
counterproductive in case the
• It assists in developing a sense organization cannot provide
of organizational citizenship the right leadership and work
amongst employees. environment to the
employees. The components of total
rewards include