WorldatWork

Total Rewards
Model
 T O T A L R E W A R D S M O D E L

E W A R D S ST R
TAL R ATE
T O

GY
Strategy
Culture Compensation WORKFORCE
Workforce EXPERIENCES
Inclusion Well-Being
PRODUCTIVE

Leadership

INSPIRED
INFLUENCES HR STRATEGY Benefits
Social Norms
Regulatory Development
AI & Technology ORGANIZATION
Product Market Recognition PERFORMANCE
Labor Market

COMMITTED

Total Rewards encompasses the elements

– compensation, well-being, benefits, recognition
and development — that, in concert, lead to optimal
organizational performance. When designed strategically and executed
in alignment with business goals, Total Rewards programs fuel motivated
and productive workforces that feel appreciated and rewarded for their
contributions, driving the organization to ever greater success.

Initially introduced in 2000, the WorldatWork Total Rewards Model

continually evolves to reflect changes in organizations’ needs, workforce
expectations, workforce demographics and the Total Rewards profession.

The practice of Total Rewards requires in-depth knowledge, specialized

skills, and up-to-the-minute insight into the most critical issues facing
today’s workforce. The model captures the broad influence that Total
Rewards practices and its practitioners have on organizational strategy
and workforce outcomes.

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The Total Rewards Model

The Total Rewards Model encompasses five components, each of which includes
programs, practices, and nuanced dimensions that collectively define an
organization’s strategy to build a productive, inspired and committed workforce.

Compensation
Well-Being
Benefits
Development
Recognition

Compensation Well-Being Benefits Development Recognition

Pay provided by an The state of a workforce Programs focused on Encompasses the rewards Formal or informal
employer to workers in that is productive, health and welfare, income and opportunities that programs that thank,
exchange for services such comfortable, happy, and protection, financial employers offer their validate, recognize and
as time, effort and talent. healthy, considering preparedness, retirement workers to advance their celebrate workforce
This includes both fixed physical, emotional/ and time off including skills, competencies, contributions while
and variable pay tied to mental, financial and leaves of absence, responsibilities and aligning and strengthening
overall contributions. environmental factors. aimed to provide holistic contributions — in organizational culture.
Total Rewards professionals well-being and security both their short- and
influence this state through for the workforce and long-term careers.
organizational strategic their families.
influence and building
programs that support
workforce success inside
and outside of work.

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Influences
Following are the many external and internal influences that inform Total Rewards initiatives.

Internal Influences
There are also internal influences that inform the design and implementation of Total Rewards
programs. These encompass business strategy, culture, workforce, inclusion, and leadership:

Strategy
Culture
Workforce
Inclusion
Leadership
INFLUENCES HR STRATEGY
Social Norms
Regulatory
AI & Technology
Product Market
Labor Market

Strategy Culture The Workforce Inclusion Leadership

Total Rewards strategies Simply stated, Rewards must be tailored In these hyper-accelerated Total Rewards programs
are a mechanism to make organizational culture to meet the needs of times, diversity and are only effective when
a strong business strategy refers to a set of shared an increasingly diverse inclusion strategies leaders play an active role
come to life. Whether values and beliefs pool of employees that is provide organizations to promote understanding
the goal is operational that form over time as defined by geopolitical with a competitive and appreciation of the
excellence, product/ people interact and work trends, tech advances advantage in talent rewards programs. Total
service leadership, or together. It encompasses and talent demographics, attraction and workforce Rewards practitioners must
customer engagement – an organization’s vision, including today’s up-to- productivity. Total Rewards work with organizational
rewards programs help values, norms, and five-generation workforce. professionals leaders leaders to ensure that
communicate expectations, ultimately influences Savvy Total Rewards pros can help organizations Total Rewards initiatives
align efforts, and motivate workforce experiences see this as an opportunity achieve greater diversity align with business
the behaviors required to and outcomes. Total to attract the highest while building an inclusive goals and that they are
deliver results. Rewards offerings can help performers and “best” culture by developing clear well-understood, used and
transform and re-enforce the competition. approaches for pay equity appreciated by workers for
desired cultural norms, and transparency, career maximum impact.
and significantly influence development, inclusive
how work is performed benefits and more.
and recognized in
the organization.

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External Influences

An organization’s Total Rewards program must be created in consideration of

external influences including social/cultural norms, the regulatory environment,
advancements in AI and technology, and the competitive (product and labor)
markets. A deep understanding of these factors provides the context required to
build effective programs that attract and retain high-performing employees and
drive business outcomes.

Strategy
Culture
Workforce
Inclusion
Leadership
INFLUENCES HR STRATEGY
Social Norms
Regulatory
AI & Technology
Product Market
Labor Market

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HR Strategy The Power of Total Rewards

While Total Rewards plays a leading role in the When business strategy, culture and Total Rewards
employee experience, it does not exist in a vacuum. programs are aligned, the result is productive,
Initiatives must be completely woven into the committed, and inspired employees who contribute
enterprise’s HR strategy, considering the human their time, talent and efforts at their highest levels.
capital and societal influences that affect program In turn, this elevates performance of individuals and
design and strategy. Upskilling, the gig economy, teams, and enhances the bottom line. The gap between
regulatory changes, AI’s impact, data analytics, pay what happens and what is possible is best impacted
equity, and other HR factors all influence the Total by thoughtfully designed Total Rewards programs.
Rewards Strategy. It is the most direct path to achieving organizational
outcomes and ultimately delivering the highest value
to your workforce.

E W A R D S ST R
TAL R ATE
T O
GY

Strategy
Culture Compensation WORKFORCE
Workforce EXPERIENCES
Inclusion Well-Being
PRODUCTIVE

Leadership
INSPIRED

INFLUENCES HR STRATEGY Benefits

Social Norms
Regulatory Development
AI & Technology ORGANIZATION
Product Market Recognition PERFORMANCE
Labor Market

COMMITTED

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