The people in great companies are positive and motivated to add value because the company believes they are important. This requires having an effective leadership team that sets the right examples, working with exciting and positive associates, and sharing accountability for delivering meaningful results by doing challenging and interesting work. Again, as with the case of the reward principles, we based the four components of total rewards on common sense, our research and consulting experience, and a business view of what makes a firm attractive. Total Reward Strategy A company's total reward strategy or philosophy describes the fundamental principles and parameters for designing rewards throughout the organization. Company leaders should consider the six reward principles as they develop the total reward strategy.
Many factors affect the strategy.
First, the business strategy clarifies the concept of the business and how this creates a compelling future. It also takes into account how the company addresses the business environment and competitive situation it faces. This business strategy drives the human resource strategy and organization design, which in turn drive the total reward strategy. The workforce influences the total reward strategy since the company must be sensitive to its needs to create a win-win situation. In turn, the total reward strategy, along with the specific business conditions of the company or one of its organizational units, helps define the business case for changing rewards.