This document discusses total reward frameworks and balancing organizational and employee needs. It outlines different elements of total reward including non-financial rewards, statutory benefits, non-statutory benefits, long-term incentives, annual variable pay, and guaranteed cash. The goal is to attract, motivate, and retain talent through a balanced total reward strategy that meets both business and individual needs.

1. MB Reward
Framing Total Reward within the Business & HR
Solutions
What are the organisational needs ?
Balancing the needs of
cost and performance
t
Business Organisation’s values, budgets, performance with those of talent
en
strategy demands, and talent requirements recruitment,
nm development and
retention
ig
Al
People TOTAL
strategy
Annual
Long-term Guaranteed variable pay;
incentives cash short-term
Total incentives
Implement-
Reward ation
strategy
Non-
Statutory Non-financial statutory
benefits rewards benefits
People
performance
En
&
REWARD contribution
ga
ge
m
en
Employees’ values, expectations, Change Business
preferences and demographics management,
t
performance
communication,
consultation and
Copyright - What are the employees’ needs ? negotiation
Malcolm Bond - Aug 05

2. MB Reward
Total Reward structure & HR
Solutions
Typical examples Reward type Reward category definitions
Career growth; learning and development
enablement value
engagement and
Motivational,
organisation
Work / life balance
intangible
Intrinsic,
within
Internal and external pay equity; 'equal pay'
Work quality
Non-financial rewards Total Reward
Working environment
Affiliation, organisational reputation and brand
Employer’s National Insurance Contributions (NIC) Statutory benefits Total Remuneration +
Pension / retirement provision
Life Assurance
Disability insurance (LTDB / IP / PHI)
Reward elements to which a currency value can be applied
Private medical insurance (PMI)
Critical illness insurance
Other insurances (dental, optical, holiday / travel, etc.)
Non-statutory benefits Total Remuneration
Car and fuel benefits / cash alternatives
Total Remuneration +
Voluntary benefits (discounts, cashbacks, vouchers, etc.)
Benefit allowances (e.g. Flex plan)
Total Reward
Extrinsic, tangible
Loans
Executive share options
Company share option plans (CSOPs and EMIs)
Restricted shares / performance shares Long-term incentives Total Direct
Total Remuneration
Discounted share purchase plans (LTI)
Share acquisition plans / SIPs
Compensation
Sharesave plans / SAYE
Long-term cash incentive plans
Sales incentive bonus plans
Compensation
Annual variable pay / Total
Total Direct
Sales commission plans
short-term incentives
Annual incentive / bonus payments (STI) Cash
Profit share / profit-related payments
Other contractual cash allowances
Total
Cash
Other fixed payments (shift pay, etc.) Guaranteed cash
Basic salary / base pay (including holiday pay)

3. MB Reward
Total Reward structure including extrinsic non-cash reward items & HR
Solutions
Typical examples Reward type Reward category definitions
Career growth; learning and development
enablement value
engagement and
Motivational,
organisation
Work / life balance
intangible
Intrinsic,
within
Internal and external pay equity; 'equal pay'
Work quality
Working environment
Affiliation, organisational reputation and brand
Business travel opportunities Non-financial rewards Total Reward
Childcare / creche facilities
Gymnasium / health club
Sports & Social club
Telecommuting / flexible working
Recognition award programmes
Holidays
Total Remuneration +
Reward elements to which a currency value can be applied
Employer’s National Insurance Contributions (NIC) Statutory benefits
Pension / retirement provision
Life Assurance
Disability insurance (LTDB / IP / PHI)
Private medical insurance (PMI)
Critical illness insurance
Other insurances (dental, optical, holiday / travel, etc.)
Non-statutory benefits Total Remuneration
Extrinsic, tangible
Car and fuel benefits / cash alternatives
Voluntary benefits (discounts, cashbacks, vouchers, etc.)
Benefit allowances (e.g. Flex plan)
Loans
Executive share options
Company share option plans (CSOPs and EMIs)
Restricted shares / performance shares Long-term incentives Total Direct
Discounted share purchase plans (LTI)
Compensation
Total Remuneration +
Share acquisition plans / SIPs
Total Remuneration
Sharesave plans / SAYE
Long-term cash incentive plans
Sales incentive bonus plans
Compensation
Total Reward
Annual variable pay /
Sales commission plans
Total Direct
Annual incentive / bonus payments
short-term incentives
(STI)
Total
Profit share / profit-related payments Cash
Other contractual cash allowances
Total
Cash
Other fixed payments (shift pay, etc.) Guaranteed cash
Basic salary / base pay (including holiday pay)