MODEL OF TOTAL REWARD
Amodel of total reward is shown in Figure 42.3.
The upper two quadrants – pay and benefits – represent transactional rewards. These
are financial in nature and are essential to recruit and retain staff but can be easily
copied by competitors. By contrast, the relational (non-financial) rewards produced
Reward management ❚ 633Transactional
(tangible)CommunalIndividual
Relational
(intangible)Figure 42.3 Model of total reward
Pay Benefits
● base pay ● pensions
● contingent pay ● holidays
● cash bonuses ● health care
● long-term incentives ● other perks
● shares ● flexibility
● profit sharingLearning and development Work environment
● workplace learning and ● core values of the organization
development ● leadership
● training ● employee voice
● performance management ● recognition
● career development ● achievement
● job design and role development
(responsibility, autonomy,
meaningful work, the scope to
use and develop skills)
● quality of working life
● work/life balance
● talent management