Reward Yourself in a Total Rewards Model and How Companies Can Help
In today’s competitive job market, organizations must go beyond offering standard salaries and benefits to attract, engage, and retain top talent. A Total Rewards Model is a comprehensive approach that combines monetary and non-monetary incentives to meet the diverse needs of employees.
As many of us know, according to Maslow’s hierarchy of needs, the basic physiological and safety needs must be fulfilled before we aim for the higher-level needs, i.e. Self-Actualization. When someone reaches Self-Actualization stage, it is when the person has essentially attained his or her full potential.
However, as Maslow emphasized, the basic needs must be fulfilled first. This concept is reinforced by integrating Maslow’s Hierarchy of Needs with Herzberg’s Two-Factor Theory, where basic needs align with Hygiene Factors and extrinsic rewards primarily addresses these basic needs.
Ultimately, when one moves up the hierarchy, we need to look beyond the extrinsic rewards and more into intrinsic rewards where Motivator Factors (i.e. achievement, recognition, work responsibility) are taken into consideration. Total Rewards is a balance of both intrinsic and extrinsic rewards.
This article explores how the concept of "rewarding yourself" fits into the Total Rewards Model and how companies can support employees in this process.
What is a Total Rewards Model?
A Total Rewards Model encompasses all the tools an organization uses to attract, motivate, and retain employees. It generally summarized into five key components based on the Total Rewards framework above:
Compensation: Base salary, bonuses, commissions, and equity.
Benefits: Health insurance, retirement plans, and paid time off.
Work-Life Balance: Flexible work arrangements and wellness programs.
Recognition: Formal acknowledgment of achievements through awards or public praise.
Development Opportunities: Training programs, career advancement pathways, and mentorship.
This holistic approach ensures that employees feel valued not only financially but also emotionally and professionally.
Rewarding Yourself within the Total Rewards Framework
The idea of “rewarding yourself” aligns well with the Total Rewards philosophy by encouraging employees to actively engage in personal growth, well-being, and satisfaction. Based on our numerous consulting assignments with various organizations, here’s how this concept integrates into the model highlighting some of the common interventions:
Personal Development: Employees can take advantage of professional training programs or tuition reimbursement to invest in their skills and career growth.
Wellness Programs: Companies offering gym memberships, mental health resources, or wellness stipends empower employees to prioritize their physical and emotional health.
Flexible Benefits: Customizable options like additional vacation days or remote work allow employees to tailor their rewards to their unique needs.
By fostering a culture where employees feel empowered to reward themselves through available resources, companies enhance engagement and loyalty.
How Companies Can Support Employees
Based on our experience, organizations play a crucial role in enabling employees to “reward themselves” effectively. Here are actionable ways companies can help:
1. Provide Comprehensive Benefits
Offer health insurance plans that include mental health coverage.
Introduce wellness stipends for activities like yoga, Zumba classes or fitness equipment.
2. Promote Work-Life Balance
Implement flexible work schedules or remote work options.
Encourage employees to take time off without stigma.
3. Recognition Programs
Establish regular recognition initiatives such as “Employee of the Month” awards or peer-to-peer recognition platforms.
Provide monetary or non-monetary rewards for exceptional performance, e.g. movie night, incentive trips
4. Support Career Growth
Invest in employee development through training programs, certifications, or leadership coaching.
Create clear pathways for promotions and role expansions.
5. Offer Customizable Perks
Allow employees to choose from a menu of perks such as additional vacation days, childcare support, or learning stipends.
Use technology platforms that provide visibility into total rewards packages.
The Business Impact
A well-implemented Total Rewards Model benefits both employees and organizations and here are 3 biggest positive outcomes from our various client consulting engagements:
Increased employee satisfaction leads to higher productivity and retention.
Enhanced employer branding attracts top talent in competitive markets.
Reduced turnover minimizes costs associated with hiring and training new staff.
Conclusion
The concept of "rewarding yourself" is not just a personal mantra but a vital part of modern workplace strategies under the Total Rewards Model. By offering diverse rewards that cater to individual needs, companies can create an environment where employees feel motivated to grow personally and professionally. In turn, this leads to a more engaged workforce and better business outcomes.
