Total rewards include which of the following elements?

Total rewards refer to the comprehensive package of benefits and compensation that an organization offers to its employees. This package typically includes several key elements that aim to attract, motivate, and retain talent.

Base salary is the most fundamental component of total rewards as it represents the fixed annual pay that employees receive for their work. Benefits, such as health insurance, retirement plans, and paid time off, also play a crucial role, as they provide employees with added value beyond their direct cash compensation. Together, base salary and benefits offer a solid foundation of financial security and well-being to employees, making them a core part of the total rewards framework.

While bonuses, stock options, commission, and profit sharing are certainly valuable elements that can enhance an employee's overall compensation and incentives, they are categorized more narrowly within the performance-based or contingent compensation aspects of total rewards. Flexible working hours, while beneficial for work-life balance, do not directly contribute to the financial or health-related aspects typically covered in a total rewards strategy.