What is a Total Rewards Strategy?
A total rewards strategy articulates an institution’s overall plan for the rewards it will offer in exchange for the excellent work and commitment of its faculty and staff. The actual statement can be concise or detailed. To be effective, the strategy should capture the full set of rewards, both financial and nonfinancial. Segal/Sibson’s Rewards of Work (ROW) model, which captures and articulates five reward elements, is an effective and clear framework for building a total rewards strategy. (See companion article, “Why Workers Stay or Go,” in this issue.) A comprehensive strategy should address each element in the model, articulating the • goals, • relative value, • roles and responsibilities to ensure effective execution, • short- and long-term objectives and tactics, and • metrics to measure effectiveness and progress. Institutions that develop a total rewards strategy realize significant benefits. The strategy: • helps ensure that the value the institution receives for its rewards
