The reward principles help facilitate and magnify success because they cut across the differences in customized reward strategies. Conclusions The reward principles and the four components of total rewards are critical to effectively aligning rewards with the company's direction and values and are the foundation for each suggestion and alternative we present. Align rewards with business goals to create a win-win partnership. Extend people's line of sight. Reward individual ongoing value with base pay.
Reward results with variable pay.
The more the emphasis is on total rewards and the four total reward components, the more likely that design is effective. Although there is no one way to operationalize these principles or total reward components, they give you a framework to evaluate how your company's reward programs and reward change processes are likely to work. The reward principles and four total reward components make up a usable foundation for going forward. It just makes good business sense to do a bit of focused strategic thinking at the start of any undertaking as important as aligning rewards with business goals. The future belongs to rewards driven by some basic business principles and based on a solid foundation of total rewards.