What Are the Benefits of a Total Rewards Package?

Total rewards include both cash and other incentives.

Total rewards package is a human resources term used to describe compensation offered to an employee. More than simply salary, this encompasses insurance benefits, retirement programs, tuition reimbursement and any other form of compensation not immediately tangible.

Financial Compensation

An employee's compensation consists of their base salary, overtime and merit increases. This also includes any incentive compensation such as bonuses.

Healthcare Coverage

This piece of a total rewards package encompasses all medical, vision and dental as well as short- and long-term disability insurance offered by an employer. Flexible spending accounts would also fall under this umbrella.

Retirement Programs

Retirement programs offered in total rewards packages may include matching or non-matching 401(k) accounts. In large public corporations, a profit sharing and/or stock purchasing program may be offered as well.

Tuition Reimbursement

Employers will often reimburse workers who choose to continue their education, as long as the field of study is relevant to their job duties.

Time Off

Standard time off includes paid vacation, as well as sick and personal days.

Additional Perks

Many large employers have the ability to offer employee discounts at cultural institutions and retailers.

References

• T. Rowe Price: Total Rewards Package