Encyclopedia of Sustainable Management

Living Edition
| Editors: Samuel Idowu, René Schmidpeter, Nicholas Capaldi, Liangrong Zu, Mara Del Baldo, Rute Abreu

Total Rewards

  • Ewa Beck-KralaEmail author
Living reference work entry
DOI: https://doi.org/10.1007/978-3-030-02006-4_203-1



Total reward is an approach to reward management that emphasizes the need to consider all aspects of the work of value to employees, not just a few, such as pay and employee benefits. It aims to blend the financial and nonfinancial elements of reward into a cohesive whole. Total rewards complement the organizational goals as well as values and culture, ensuring a highly effective realization of the business strategy. Total reward is of interest because it encompasses all types of rewards – nonfinancial as well as financial, indirect as well as direct, and intrinsic as well as extrinsic.


Today it is more important than ever for organizations to have a strategic and integrated approach to rewards. Traditional rewards programs are typically financial in nature and must be at least at a baseline competitive level for companies to attract and retain talent (Bremen and Sejen 2012). The effectiveness of these traditional rewards...

This is a preview of subscription content, log in to check access.


  1. Anku-Tsede, O., & Kutin, E. (2013). Total reward concept: A key motivational tool for corporate Ghana. Business and Economic Research, 3(2), 173–182. Macrothink Institute.CrossRefGoogle Scholar
  2. Armstrong, M., & Brown, D. (2005). Reward strategies and trends in the United Kingdom: The land of diverse and pragmatic dreams. Compensation and Benefits Review, 37, 41–53.CrossRefGoogle Scholar
  3. Armstrong, M., & Cummins, A. (2011). The reward management toolkit. A step-by-step guide to designing and delivering pay and benefits (p. 47). London: Kogan Page.Google Scholar
  4. Beck-Krala, E., & Klimkiewicz, K. (2016). Occupational safety and health as an element of a complex compensation system evaluation within an organization. International Journal of Occupational Safety and Ergonomics, 22(4), 523–531.CrossRefGoogle Scholar
  5. Bremen, J., & Sejen, M. (2012). Advancing total rewards & the employee value proposition. Worldatwork Magazine, 1, 55–61.Google Scholar
  6. Brown, D. (2014). The future of reward management: From total reward strategies to smart rewards. Compensation and Benefits Review, 46(3), 147–151.CrossRefGoogle Scholar
  7. Chen, H., & Hsieh, Y. (2006). Key trends of the total reward system in the 21st century. Compensation and Benefits Review, 38(6), 64–70.  https://doi.org/10.1177/0886368706292542.CrossRefGoogle Scholar
  8. Gerhart, B., & Ryne, S. L. (2003). Compensation: Theory, evidence, and strategic implications. London: Sage.Google Scholar
  9. Griffin, R. W. (1999). Management. New York: Houghton Mifflin Company.Google Scholar
  10. Gross, S. E., & Friedman, H. M. (2004). Creating an effective total reward strategy: Holistic approach better supports business. Benefits Quarterly, 20(3), 7.Google Scholar
  11. Gulyani G., & Sharma, T. (2018). Total rewards components and work happiness in new ventures: The mediating role of work engagement. Available from: https://www.researchgate.net/publication/325745333. Accessed 11 Aug 2019.
  12. Heneman, L. R., & Coyne, E. E. (2007). Implementing total rewards strategies. Alexandria: SHRM Foundation.Google Scholar
  13. Kaplan, S. L. (2007). Business strategy and Total rewards. Benefit and Compensation Digest, 44(9), 12–19.Google Scholar
  14. Klimkiewicz, K., & Beck-Krala, E. (2015). Responsible rewarding systems – the first step to explore the research area. Research Papers of Wrocław University of Economics.Google Scholar
  15. Lawler, E. (2000). Rewarding excellence: Pay strategies for the new economy. San Francisco: Josse-Bass Publishers/Wiley.Google Scholar
  16. Lyons, F. H., & Ben-Ora, D. (2002). Total rewards strategy: The best foundation of pay for performance. Compensation and Benefits Review, 34(2), 34.CrossRefGoogle Scholar
  17. Milkovich, G., & Newman, J. (2001). Compensation. San Francisco: Jossey Bay.Google Scholar
  18. Morris, I. (2006). The future of work: Total reward strategies and Canadian’s aging workforce. Toronto: Rogers Media.Google Scholar
  19. O’Neil, S. (1998). The phenomenon of Total rewards. ACA Journal, 7(3), 8–12.Google Scholar
  20. Rickard, C., Reilly, P., & Brown, D. (2016). Applying a reward strategy in local government, IES, Institute for Employment Studies, Local Government Association UK, 1–32. Retrieved from: https://www.local.gov.uk/sites/default/files/documents/applying-reward-strategy%2D%2Da2d.pdf. November 2018.
  21. Rousseau, D. M. (1995). Psychological Contracts in Organizations: Understanding Written and Unwritten Agreements. Newbury Park, CA: Sage.Google Scholar
  22. Thompson, P. (2002). Total reward. London: Chartered Institute of Personnel Development (CIPD).Google Scholar
  23. Torre, T., & Sarti, D. (2013). Total reward system: Towards an operational model. In: EAISM 4th European reward management conference (Rmc 2013) managing rewards: What can we learn from a comparative approach? Brussels, December 2–3, 2013.Google Scholar
  24. Towers Perrin. (2005). Reconnecting with employees: Quantifying the value of engaging your workforce. London: Towers Perrin Report.Google Scholar
  25. UK Cabinet Office. (2007). Total reward strategy. Available at: www.cabinetoffice.gov.uk/workforcematters

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.Faculty of ManagementAGH University of Science and TechnologyKrakowPoland

Section editors and affiliations

  • Mirja Mikkilä
    • 1
  1. 1.School of Energy SystemsLappeenranta University of TechnologyLappeenrantaFinland