The document provides an overview of the WorldatWork Total Rewards Model, which is a framework for developing strategies to attract, motivate, and retain employees. The model identifies five key elements of a total rewards strategy: compensation, benefits, work-life, performance and recognition, and development and career opportunities. It also discusses how total rewards strategies must be developed within the context of business strategy, organizational culture, and external influences.

1. 1 www.worldatwork.org/totalrewards
www.worldatwork.org
Total
Rewards
Model
A Framework
for Strategies
to Attract,
Motivate and
Retain Employees
WorldatWork Total Rewards Model 32
www.worldatwork.org/totalrewards
• Compensation
• Benefits
• Work-Life
• Performance
and Recognition
• Development

2. and Career
Opportunities
= Leveraging Five Elements to
Attract, Motivate, Retain
• Business
strategy
• Organizational
culture
• HR strategy
• External
influences
(competition,
industry,
regulation, etc.)
• Geography
(location of
workforce)
Context of
Total Rewards
Employee
provides:
Time, talent,
efforts and
results
Employer
provides:

3. Total rewards
valued by
employees
The Exchange
Relationship
Total Rewards
Strategy
Dedicated to Knowledge Leadership
in Total Rewards
During the past several years, the concept of total rewards has
advanced
considerably. Practitioners have experienced the power of
leveraging multiple
factors to attract, motivate and retain talent; high-performing
companies
realize that their proprietary total rewards programs allow them
to excel
in new ways.
At the same time, human resource professionals, consulting
firms, service
providers and academic institutions have made significant
contributions
to our understanding of total rewards.

4. The WorldatWork Total Rewards Model
rewards
which total rewards
strategies and pro grams exist
retaining satisfied
and engaged employees who create business performance and
results
and employers—
the employee’s contribution of time, talent and efforts for
desired
business results.
As the association of the profession, WorldatWork
presents this model to:
rewards
their
own organizations

5. uidepost for intellectual capital
development in the profession
support
their intellectual capital endeavors.
(See page 5 for model definitions.)
WorldatWork Total Rewards Model 54
www.worldatwork.org/totalrewards
Pay provided by an employer to an employee for services
rendered (i.e. time, effort and skill). Includes both fixed
and variable pay tied to levels of performance.
Programs an employer uses to supplement the cash
compensation that employees receive. These health, income
protection, savings and retirement programs provide security
for employees and their families.
A specific set of organizational practices, policies and
programs, plus a philosophy, that actively supports efforts

6. to help employees achieve success at both work and home.
Performance: The alignment of organizational, team
and individual efforts toward the achievement of business
goals and organizational success. It includes establishing
expectations, skill demonstration, assessment, feedback
and continuous improvement.
Recognition: Acknowledges or gives special attention
to employee actions, efforts, behavior or performance.
It meets an intrinsic psychological need for appreciation of
one’s efforts and can support business strategy by reinforcing
certain behaviors (e.g., extraordinary accomplishments) that
contribute to organizational success. Whether formal or
informal, recognition programs acknowledge employee
contributions immediately after the fact, usually without
predetermined goals or performance levels that the employee
is expected to achieve. Awards can be cash or noncash
(e.g., verbal recognition, trophies, certificates, plaques,
dinners, tickets, etc.)

7. Development: A set of learning experiences designed
to enhance employees’ applied skills and competencies.
Development engages employees to perform better
and engages leaders to advance their organizations’
people strategies.
Career Opportunities: Involve the plan for employees to
advance their career goals. May include advancement into
a more responsible position in an organization. The company
supports career opportunities internally so that talented
employees are deployed in positions that enable them
to deliver their greatest value to the organization.
Total Rewards Definitions
Total Rewards
Component Definitions
For example programs and more information,
go to www.worldatwork.org/totalrewards
Compensation
Benefits
Work-Life

8. Development and
Career Opportunities
Performance &
Recognition
The Elements of Total Rewards
There are five elements of total rewards, each of which includes
programs,
practices, elements and dimensions that collectively define an
organization’s
strategy to attract, motivate and retain employees. These
elements are:
The elements represent the “tool kit”
from which an organization chooses
to offer and align a value proposition
that creates value for both the
organization and the employee.
An effective total rewards strategy results in satisfied, engaged
and productive
employees, who in turn create desired business performance and
results.
The elements, as WorldatWork has defined them, are not

9. mutually exclusive
and are not intended to represent the ways that companies
organize or deploy
programs and elements within them. For instance, performance
management
may be a compensation-function-driven activity or may be
decentralized in line
organizations; it can be managed formally or informally.
Likewise, recognition
could be considered an element of compensation, benefits and
work-life.
Context for Total Rew ards
The WorldatWork model recognizes that total rewards operates
in the context
of overall business strategy, organizational culture and HR
strategy. Indeed,
a company’s exceptional culture or external brand value may be
considered a
critical component of the total employment value proposition.
The backdrop of
the WorldatWork model is a globe, representing the external
influences on a busi-
ness, such as:

10. Compensation
Benefits
Work-Life
Performance and Recognition
Development and Career Opportunities
6 7
To get a comprehensive view of your organization’s value
proposition, simply
check off the rewards your organization currently provides.
Development &
Career Opportunities
Learning
Opportunities
te Universities

11. -the-Job Learning
Outside Seminars
and Conferences
Podcasts, Webinars
-Development Tools
Coaching/
Mentoring
to Resident
Experts
Networks
Mentoring Programs
Advancement
Opportunities

12. Promotion
r Ladders
and Pathways
Career Lifecycle
Performance
Team Evaluations
Goal Setting Sessions
Recognition
Awards
Programs

13. -wide
Recognition Programs
Awards
Year Awards
tion Luncheons,
Outings, Formal Events
-Specific Awards
(Quality, Efficiency,
Cost-Savings,
Productivity, Safety)
Programs
Performance
& Recognition
Your Total Rewards Inventory
Compensation
Base Wages
ary Pay
Premium Pay

14. -call Pay
-In Pay
-Lingual Pay
-Based Pay
Variable Pay
-Based Pay
ferral Bonus
Bonus
Short-term:

15. Performance Based
Incentives
-
Sharing Incentives
Long-term:
d Stock
Benefits
Legally
Required/Mandated
Insurance
(if applicable)
Health & Welfare

16. Accounts (FSAs)
Accounts (HRAs)
Accounts (HSAs)
nsurance
Life Insurance
-Term/Long-Term
Disability Insurance
Retirement

17. Pay for Time
Not Worked
Holiday
(Military, Personal
Medical, Family Medical)
Work-Life
Workplace Flexibility/
Alternative Work
Arrangements
-Time
week
-time Employment
Paid and Unpaid Time Off

18. Health and Wellness
-site Fitness Facilities
ness Club Rates
-Site Massages
-Site Nurse
Services

19. Pregnancy Programs
-Hour Nurse Line
-Site Work-Life Seminars
(Stress-Reduction, Parenting, etc.)
Community Involvement
olunteer Programs
-Kind Donations
Caring for Dependents
Reimbursement Accounts
Travel-Related Expense
Reimbursements
and Resource Services
Programs or Vouchers

20. Care Services
-site Caregiver
Support Groups
-Site Dependent Care
nce Services
-School Care Programs
-home Assessments
for Eldercare
Financial Support
Services and Education

21. Voluntary Benefits
eft Insurance
Culture Change Initiatives

22. tional Initiatives
WorldatWork Total Rewards Model 8
Worldwide Headquarters
WorldatWork
14040 N. Northsight Blvd.
Scottsdale, AZ 85260
Washington, D.C. Office
& Conference Center
1100 13th Street, NW
Suite 800
Washington, D.C. 20005
Phone: 877-951-9191
Fax: 866-816-2962
About WorldatWork®
The Total Rewards Association
WorldatWork (www.worldatwork.org) is a not-
for-profit organization providing education,

23. conferences and research focused on global
human resources issues including compen-
sation, benefits, work-life and integrated
total rewards to attract, motivate and retain
a talented work force. Founded in 1955,
WorldatWork has nearly 30,000 members in
more than 100 countries. Its affiliate orga-
nization, WorldatWork Society of Cer tified
Professionals®, is the cer tif ying body for
the p r e s tig iou s C e r tif ie d C omp e ns ation
Pr ofe s siona l ® (CCP ®), Ce r tif ie d B e nef it s
Professional® (CBP), Global Remuneration
Pr ofes siona l (GRP ®), Wor k- Life Cer tifie d
Pr ofe s s iona l™ ( WLCP ®), C e r tif ie d S a le s
C o m p e n s a t i o n Pr o fe s s i o n a l™ (C S C P™ ),
a n d C e r t i f i e d E xe c u t i ve C o m p e n s a t i o n
P r o f e s s i o n a l™ ( C E C P™ ) . Wo r l d a t Wo r k
has of fices in Scot tsdale, A r izona , and

24. Washington, D.C.
The WorldatWork group of registered marks
includes: Alliance for Work-Life Progress® or
AWLP®, workspan®, WorldatWork® Journal,
and Compensation Conundrum®.
www.worldatwork.org
©2011 WorldatWork. Not to be reproduced in
any form without express written permission
from WorldatWork.
W57963142 10/2011
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