A Total Rewards Manager is a human resources (HR) professional responsible for designing and managing an organization’s compensation, benefits, and employee recognition programs to attract and retain top talent. Their role focuses on ensuring competitive pay structures, optimizing benefits offerings, implementing performance-based employee incentives, and enhancing the overall employee experience through a holistic total rewards strategy.
Key responsibilities of a total rewards manager
Developing and implementing competitive salary structures
A key responsibility of a total rewards manager is to develop and implement competitive salary structures that attract and retain top talent. This process involves conducting thorough market research and salary benchmarking to ensure the organization’s compensation packages remain competitive within the industry and across different geographical regions.
Salary benchmarking is even more critical in areas where employers are legally required to disclose the salary range for a position, and using the best benchmarking tools is imperative to offer appropriate salaries. The Harvard Business Review reported research that shows “access to robust [salary] benchmarking tools doubled the probability of firms setting the ‘right’ salary.”
Total rewards managers are also tasked with establishing equitable pay structures and designing incentive-based compensation models that align with the company’s goals and motivate employees to perform at their best.
What skills and qualifications are needed?
- Compensation and benefits strategy. Expertise in salary structuring, pay equity, and incentive design.
- Financial acumen and budgeting. Experience managing compensation budgets and benefits costs.
Overseeing employee benefits and wellness programs
In addition to developing and managing salary structures, total rewards managers oversee comprehensive employee benefits and wellness programs that positively contribute to the employee experience.
This encompasses managing health insurance options, retirement plans, wellness initiatives, and leave policies that comply with regional regulations and meet employees’ needs (and perhaps delight them, too). HubSpot, for example, acknowledges that its employees are “deeply curious.” To support their curiosity, the company runs several ongoing learning programs, including the Free Books Program, which is particularly popular among employees. According to HubSpot, “any employee can request any book (within reason) through a form and we will send them a Kindle or hard copy for free within a week or two.”
In addition to overseeing these programs, total rewards managers regularly evaluate benefits offerings to see if they are cost-effective, used by employees, and popular. Then, they adjust as necessary so that the benefits package remains competitive.
Managing incentive and performance-based reward programs
Because employee engagement benefits an organization in numerous proven ways, total rewards managers work to craft incentive and performance-based reward programs that reliably boost employees’ engagement in their work. This responsibility involves crafting tailored bonus structures, stock option plans, and long-term incentive schemes that resonate with diverse employees across different countries and cultures. For example, as an incentive, Adobe offers a paid one-month sabbatical to employees who have worked there for five years.
By aligning these rewards programs with individual employee performance metrics and overarching company objectives, total rewards managers ensure that compensation strategies effectively motivate staff, foster loyalty, and contribute to achieving business goals globally.
What skills and qualifications are needed?
- Program management of benefits programs. Knowledge of how rewards impact employee motivation and retention.
Enhancing employee recognition and engagement programs
Successful employee recognition and engagement programs foster a positive workplace culture and boost workforce motivation. As part of their duties, total rewards managers develop or enhance non-monetary reward systems, such as peer-to-peer recognition platforms, milestone celebrations, and career development opportunities. These programs are not one-size-fits-all—to be effective, they must cater to diverse employee preferences across different regions.
By implementing engagement strategies that align with the company’s values and objectives, total rewards managers can improve employee retention and profitability.
The power of strategic recognition programs in real life
Programs that recognize employees’ efforts need not be complicated or expensive to administer, as even simple, low-cost programs can have a notable impact. For example, the German public utility E.ON instituted a platform wherein employees could send each other digital or printed thank-you notes to recognize their work. Before the thank-you note program was initiated, employee motivation was measured at 61%. After the program, motivation increased to 69%. In addition, employees’ feelings of being valued and recognized increased from 39% to 52%.
Other benefits were more challenging to quantify but still impactful. According to an article about the program in the online publication Employee Benefits, E.ON’s strategic recognition program also “helped the organization to break down barriers between senior managers and employees, with every member of staff allowed to nominate any other person in the organization for recognition.”
Ensuring compliance with labor laws and compensation regulations
Helping organizations comply with a web of labor laws and compensation regulations across various jurisdictions is one of the total rewards manager’s jobs. This responsibility requires staying abreast of evolving legislation, such as the Fair Labor Standards Act, the Equal Pay Act, and the Affordable Care Act in the U.S., as well as other region-specific laws.
In addition, these professionals must interpret and apply regulations to their organization’s global compensation strategies. They conduct regular pay equity audits to identify and address disparities and manage compliance reporting to meet legal requirements in different countries. This meticulous approach helps mitigate legal risks and demonstrates the organization’s commitment to fair and equitable compensation practices wherever it does business.
What skills and qualifications are needed?
- HR compliance and employment law knowledge. An understanding of labor regulations affecting compensation and benefits.
Leveraging HR analytics and workforce data
Total rewards managers increasingly leverage HR analytics and workforce data to drive strategic decision-making. They review HR data, such as employee satisfaction scores, turnover rates, and reward program effectiveness, to identify trends, predict outcomes, and make informed adjustments to compensation and benefits packages across diverse global markets.
What skills and qualifications are needed?
- Data analysis and HR analytics. An ability to interpret workforce data to improve total rewards programs.
Total rewards manager vs. other HR roles
Total rewards managers occupy a unique position within the broader HR landscape, distinguishing them from the similar roles of compensation and benefits managers and HR generalists.
- Compensation and benefits managers. These HR professionals focus on pay structures and benefits, while total rewards managers incorporate employee recognition, performance incentives, and holistic rewards strategies.
- HR generalists. HR generalists handle a broad range of HR functions, while total rewards managers specialize in compensation, benefits, and employee motivation.
FAQs
What does a total rewards manager do?
They design and manage compensation, benefits, and employee recognition programs to improve retention and workforce satisfaction.
How is a total rewards manager different from a compensation and benefits manager?
Compensation and benefits managers focus on salary and benefits, while total rewards managers take a broader approach, integrating engagement and motivation strategies.
What skills are required for a total rewards manager?
The following skills are necessary for a total rewards manager to succeed:
- Data analysis capabilities
- Employee compensation planning and benefits administration experience
- Financial acumen
- Employee engagement expertise
What are the preferred certifications for a total rewards manager?
Preferred credentials include WorldatWork’s Certified Compensation Professional (CCP), the Society for Human Resource Management’s Senior Certified Professional (SHRM-SCP), and the International Foundation of Employee Benefit Plans’ Certified Employee Benefits Specialist (CEBS).
Why is a total rewards strategy important?
It ensures employees feel valued through competitive pay, benefits, and recognition, which can lead to higher retention and productivity.
Which industries hire total rewards managers?
Total rewards managers work within healthcare, technology, and finance corporations.
Go above and beyond for your talent
Businesses dedicated to offering their employees competitive compensation, benefits, and perks as they expand internationally can take advantage of Velocity Global’s knowledge of local markets. With HR expertise in 185+ countries, Velocity Global, an Employer of Record, can help companies develop their total rewards strategies while keeping them compliant with local employment regulations. Learn more.
