How does total rewards impact business strategy?

Total rewards significantly impact business strategy by aligning employee compensation and benefits with the organization's goals and objectives. This alignment ensures that employees are motivated to perform at their best and contribute to the company’s mission. By offering a comprehensive rewards system that includes not just salary, but also bonuses, benefits, recognition, and development opportunities, organizations can attract and retain top talent, enhance employee engagement, and ultimately drive better business results.

When total rewards are strategically designed, they help in fostering a culture that promotes organizational values and objectives. For instance, if a company’s goal is to innovate, providing rewards that recognize creative efforts can encourage employees to think outside the box. Therefore, total rewards are intricately connected to fostering desired employee behaviors that directly support and advance broader business strategies.