Total Rewards opens with definitions and named lists. Nearly every miss is a real term from a neighbouring framework or a superseded edition.
The definition
- The BASK defines Total Rewards as the design and implementation of compensation systems and benefit packages which are used to attract and retain employees.
- The 2014 BOCK wording is close enough to be tempting but is not current. The other near-misses are the BASK definitions of Learning & Development and Talent Acquisition.
Compensation philosophies
The BASK's examples are exactly four: lead, lag, match, lead-lag.
- These are market positioning philosophies — where you sit against the market.
- Distractors substitute pay vehicle categories (base, variable, equity), types of equity perception (internal, external, individual), or job evaluation approaches (ranking, classification, point factor). None of those are philosophies.
Pay practices and issues
The BASK list, verbatim: pay increases; base pay; pay levels; banding; variable pay; pay compression; pay equity; pay transparency.
Wrong-list answers here come from talent acquisition metrics, the WorldatWork model, and HR Strategy's strategic planning process.
Metrics and benchmarks
Under total rewards metrics and benchmarks the BASK gives just two examples: insurance participation rates and compa-ratio.
- Not turnover or retention rates — those belong to Employee Engagement & Retention.
- Not general financial or staffing ratios.
WorldatWork
The current WorldatWork Total Rewards Model has five strategic elements: compensation, benefits, well-being, careers, recognition.
The most common wrong answer is the older five-element version of the same model, which reads compensation, benefits, work-life, performance and recognition, and development and career opportunities. Both have five elements, so counting does not help you — the words do.
Carry this in: match terms to the exact list they belong to.