Framework for Developing a Total Reward Strategy

Abstract

Remuneration costs are a significant component of any public or private sector organization's operating budget. However, traditional approaches to remu neration planning and management are under increasing criticism for their failure to meet current economic and business environment. A deliberate and systematically designed remuneration strategy can provide an important tool for supporting and reinforcing the link between the organization's philosophy, values and objectives and employee performance. This paper reviews the current challenges and opportunities promoting change in remuneration practices and provides a framework for developing a total reward strategy. The objective is to define the design and delivery of a reward structure that directly supports the enterprise's business objectives and its cultural values.