Principles of Total Rewards

Corollary A: Behavior is not binary; base pay and bonus are not the only tools available to achieve the outcomes you seek. Corollary B: Having only a hammer and a screwdriver in your toolkit is no way to build a stable house. A building does not come together because people simply show up and work hard. It comes together because different tools are used for different purposes. A saw cuts. A level aligns. A tape measure confirms. Scaffolding provides access. A blueprint guides

It’s not the rider’s fault if a bike with square wheels fails to produce the outcome you seek. That is a design problem. Corollary A: Water flows to the lowest point; shape the system. Corollary B: Can you reasonably expect different outcomes than your design was built to produce? A bicycle with square wheels can still move. A skilled rider may even be able to keep it balanced, push it forward, and make some progress. With enough effort, strength, and determination, the bike

A White Elephant gets its name from a valuable item that has no real value. Principle 3: Uncommunicated Value Has NO Value Corollary 1: Communication is the simplest way to reduce turnover and increase engagement. Corollary 2: How can you influence employee perceptions if you do not communicate your intent? The white elephant has long represented a gift that appears impressive at first glance but becomes burdensome when its purpose, cost, or value is unclear. That makes it a

Employees Must Understand How They Are Paid

Principle 1: Not All HR Issues Have a Compensation Solution Corollary 1: Never allow a compensation matter to become an employee relations issue. Corollary 2: If money can’t buy happiness, how can we expect it to create engagement and retention? Let’s face it: we’ve all seen a manager want to give an employee an increase to show how much they are valued — but only after the employee has submitted a resignation. Too often, managers reach for compensation because they hope it w

Every Principle of Total Rewards, every compensation philosophy, and every rewards program ultimately traces back to these two foundational concepts.