A total rewards package is really a compilation of employee reward programs, says consultant Chuck Csizmar. In a recent BLR webinar, Csizmar discussed the different components of a total rewards package, as well as the employer benefits of implementing a total rewards strategy.

Components of a Total Rewards Package

Typically, a total rewards package might include:

• Compensation
• Benefits
• Work-life balance
• Performance and recognition
• Personal development and career opportunities

It is typically a "package" of rewards, and different aspects will speak to different individuals. To get started, "look beyond the traditional compensation and benefits programs and take note of what other initiatives you might already be offering. It might surprise you to know what programs might already be in place." Csizmar advised.

Look for program opportunities and services – even ones that the company isn’t paying the direct costs. Once you have created an inventory of available rewards, use your communication channels to talk about it and promote it to employees. You may well already have many components of a total rewards package in place without even realizing it.

Benefits of a Total Rewards Strategy

Why would an employer want to utilize a total rewards strategy? Here are some of the benefits for employers:

• Improving the ease of recruitment. "The more items or inducements that you’re able to put on the table, the stronger the case you make for selling your organization." Csizmar explained. This can help you bring high-performing candidates on board.
• Signaling that you’re a progressive company. Employees like to be associated with a well-known, well-considered company. "The brand of the company is very important. A positive, well-respected brand makes it easier to draw in quality candidates."
• Increasing employee engagement without increasing costs. Happy, engaged, connected employees will spread the word that they like where they work. Over time, that builds and solidifies the reputation of the company as a good place to work. Offering fair and equitable HR programs goes a long way toward building an appreciation of your organization among your employees.
• Increasing retention rates. Positive messages of caring will help with employee retention. Anything you can do to make the decision to leave a harder one will help your organization. The better the overall work environment, the more reluctant an employee would be to leave.
  "Remember that employees don’t leave for more money. That’s just a safe excuse and the byproduct of their dissatisfaction." Csizmar noted. "They start thinking about leaving you because of the way in which they’ve been treated and the way in which they view their employment environment. Your job is to make that leaving decision more difficult."

For more information on the benefits of implementing a total rewards strategy, order the webinar recording of "When Competitive Pay Is Not Enough: How to Develop a Unique Compensation Package for Every Employee." To register for a future webinar, visit http://catalog.blr.com/audio.

Chuck Csizmar is a Global Compensation Consultant and the founder and principal of CMC Compensation Group, a professional services provider specializing in analytic, project management, and consultative services for US and international clients.