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Total Reward Framework

This Toolkit is underpinned by the theory around Total Reward. This page explains Total Reward and the Total Reward Framework that the rest of the toolkit is based on. The Policy, Perception and Practice sections of the Toolkit then show you how to apply the Total Reward Framework to your organisation.

When we think of reward, we usually think first of the tangible elements of the remuneration package - base salary, variable pay such as bonus payments, and benefits, such as the pension scheme or holidays. In the private sector, incentive payments, share schemes, medical insurance and a fully-expensed car may also be included in the package, often described as a total remuneration package. Total Reward includes all the aspects of total remuneration, but also takes into account the intangible benefits offered by an employer; the environmental rewards such as work-life balance or training and development opportunities - the Elements of Total Reward.

Key Elements of Total Reward

© Hay Group

This diagram is representative of Total Reward across the public and private sectors of the economy. Some elements are therefore less relevant in the public sector (e.g. cars, shares), but it is important to be aware of them.

This website works with the version of the Engaged Performance® model developed by Hay Group for the public service to help you analyse, develop and implement a Total Reward strategy. It has been adopted as the Total Reward Policy framework for the public service. Hay Group (pdf, 18Kb) are an international human resource consultancy with an extensive background in reward consulting across the public and private sectors.

The Public Service Total Reward Framework

© Hay Group

This framework should be treated flexibly, with both the core definitions and the process of application tailored to fit your organisation. For example, there may be instances where particular attributes (e.g. physical environment for non location-fixed workers) are irrelevant, or where new or amended engagement factors may be required.

How the concept is applied will depend entirely on your organisation and its context as well as the employee groups involved. This website is therefore intended as a strategic guide to designing an appropriate approach, and not as a detailed instruction manual.

Inevitably, Total Reward involves other areas of HR/people management beyond the remuneration area. Applying Total Reward approaches will involve working with counterparts in development and training, recruitment, HR administration and others specific to your organisation and context.