Four Total Reward Components

Companies must provide a better workforce deal that involves the four total reward components outlined below. Companies can either balance the four components or emphasize one over the others, but they must provide a total reward package that attracts the type of talent they need and want. For example, some companies may be weak in positive workplace but have very strong total pay to make up for the difficult work environment. Other companies may have weaker total pay but develop people, provide a positive workplace, and have a compelling future that people want to support and be a part of.

Use this worksheet to identify your company’s strengths, neutrals, and weaknesses on each element in the four total reward components. How does you company size up? Does each component have a strength? Is there a balance among components? Are there enough strengths to make up for the weaknesses? Pay People Right! provides a roadmap to help you take positive action based on your evaluation of your company.

Total Reward Component	Element	Current Strength (+), Neutral (=), or Weakness (-)
Individual Growth	Investment in people Development and training Performance management Career enhancement
Compelling Future	Vision and values Company growth and success Company image and reputation Stakeholdership Win-win over time
Positive Workplace	People focus Leadership Colleagues Work itself Involvement Trust and commitment Open communications
Total Pay	Base pay Variable pay (cash and stock) Benefits or indirect pay Recognition and celebration

Source: Zingheim, Patricia K., and Jay R. Schuster. Pay People Right! Breakthrough Reward Strategies to Create Great Companies. San Francisco: Jossey-Bass Publishers, 2000.


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