This factsheet has been updated in January 2011 by Janet Egan, researcher and writer on reward and employment issues.
What are strategic reward and total reward?
Strategic reward is based on the design and implementation of long-term reward policies and practices to closely support and advance business or organisational objectives as well as employee aspirations.
The concept of total reward encompasses all aspects of work that are valued by employees, including elements such as learning and development opportunities and/or an attractive working environment, in addition to the wider pay and benefits package
The use of total reward may form part of a strategic approach to reward for many employers. For example, an organisation might adopt a total reward approach, encompassing the provision of both cutting edge training programmes together with flexible working options, as well as more traditional aspects of the pay and benefits package, in order to recruit, retain and motivate the high quality staff that are best placed to help it secure its business objectives.