The document discusses total reward frameworks and strategies within organizations. It outlines that total reward should be framed within the business and people strategies to balance organizational needs like cost and performance with employee needs like talent development. It also discusses aligning total reward strategies with employee values, expectations, and demographics as well as organizational values, budgets, and talent requirements. Finally, it provides examples of different types of rewards including statutory benefits, non-statutory benefits, guaranteed cash compensation, annual bonuses, long-term incentives, and non-financial rewards.

1. Copyright -
Malcolm Bond - Aug 05
Change
management,
communication,
consultation and
negotiation
Balancing the needs of
cost and performance
with those of talent
recruitment,
development and
retention
TOTALTOTAL
REWARDREWARD
Framing Total Reward within the Business
Business
strategy
People
strategy
Total
Reward
strategy
What are the organisational needs ?
What are the employees’ needs ?
Engagem
ent
Alignm
ent
Employees’ values, expectations,
preferences and demographics
Organisation’s values, budgets, performance
demands, and talent requirements
Implement-
ation
Business
performance
Statutory
benefits
Non-
statutory
benefits
Annual
variable pay;
short-term
incentives
Long-term
incentives
Guaranteed
cash
Non-financial
rewards
MB Reward
& HR
Solutions
People
performance
&
contribution

2. Total Reward structure
MB Reward
& HR
Solutions
Typical examples Reward type
Career growth; learning and development
Work / life balance
Internal and external pay equity; 'equal pay'
Work quality
Working environment
Affiliation, organisational reputation and brand
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.)
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
Discounted share purchase plans
Share acquisition plans / SIPs
Sharesave plans / SAYE
Sales incentive bonus plans
Sales commission plans
Annual incentive / bonus payments
Profit share / profit-related payments
Other contractual cash allowances
Other fixed payments (shift pay, etc.)
Basic salary / base pay (including holiday pay)
Total Direct
Compensation
TotalReward
Non-financial rewards
Non-statutory benefits
Reward category definitions
Total Reward
Total Remuneration +
Long-term incentives
(LTI)
Long-term cash incentive plans
Intrinsic,
intangible
Rewardelementstowhichacurrencyvaluecanbeapplied
Motivational,
engagementand
enablementvalue
within
organisation
Total
Cash
Total
Cash
TotalRemuneration+
TotalRemuneration
TotalDirect
Compensation
Extrinsic,tangible
Annual variable pay /
short-term incentives
(STI)
Guaranteed cash
Total Remuneration

3. Total Reward structure including extrinsic non-cash reward items
MB Reward
& HR
Solutions
Typical examples Reward type
Career growth; learning and development
Work / life balance
Internal and external pay equity; 'equal pay'
Work quality
Working environment
Affiliation, organisational reputation and brand
Business travel opportunities
Childcare / creche facilities
Gymnasium / health club
Sports & Social club
Telecommuting / flexible working
Recognition award programmes
Holidays
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.)
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
Discounted share purchase plans
Share acquisition plans / SIPs
Sharesave plans / SAYE
Sales incentive bonus plans
Sales commission plans
Annual incentive / bonus payments
Profit share / profit-related payments
Other contractual cash allowances
Other fixed payments (shift pay, etc.)
Basic salary / base pay (including holiday pay)
Reward category definitions
Motivational,
engagementand
enablementvalue
within
organisation
Intrinsic,
intangible
Annual variable pay /
short-term incentives
(STI)
Total Remuneration +
TotalReward
Non-statutory benefits Total Remuneration
TotalRemuneration+
Long-term incentives
(LTI)
Total Direct
Compensation
TotalRemuneration
Rewardelementstowhichacurrencyvaluecanbeapplied
Non-financial rewards Total Reward
TotalDirect
Compensation
Guaranteed cash
Total
Cash
Extrinsic,tangible
Long-term cash incentive plans
Total
Cash