chapter  12
16 Pages

Total rewards

Reward policies and practices are an important part of human resources (HR) strategy. HR strategy in its entirety seeks to give effect to the business strategy, to conduct the mission, and to achieve the corporate vision. ‘Rewards’ is a term which goes further than the basic policies on pay and benefi ts, and encompasses all those policies which are designed to attract, retain, and motivate employees to achieve objectives as the corporate response to competition. The signifi cance of rewards is that policies in this area determine costs and performance, and as we will explore in this chapter, the concept of ‘total rewards’ is coming to mean the processes on engagement and involvement, and those issues related to the management of relationships which affect the hearts and minds of employees, in the search for competitive advantage.