PHR · Question #42
What of the following statements defines total rewards?
The correct answer is B. It is the compensation and the benefits a person earns. Total rewards is a comprehensive term that encompasses all forms of monetary compensation combined with employee benefits. It goes beyond base pay to include the full value of what an employer provides.
Question
What of the following statements defines total rewards?
Options
- AIt is the total amount of pay a person earns per year.
- BIt is the compensation and the benefits a person earns.
- CIt is the amount of pay a person earns per hour.
- DIt is the compensation a person earns for their time.
How the community answered
(51 responses)- A6% (3)
- B75% (38)
- C16% (8)
- D4% (2)
Why each option
Total rewards is a comprehensive term that encompasses all forms of monetary compensation combined with employee benefits. It goes beyond base pay to include the full value of what an employer provides.
Total annual pay describes only direct monetary compensation and excludes benefits, making it an incomplete definition of total rewards.
Total rewards is defined as the complete package of compensation and benefits an employer offers, including base pay, bonuses, health insurance, retirement plans, and other non-cash benefits. This holistic definition - covering both direct compensation and indirect benefits - is the standard meaning used in HR practice and is distinct from pay alone.
Hourly pay rate refers solely to the base wage component and does not account for benefits or other reward elements.
Compensation for time describes only one dimension of direct pay and omits benefits and other non-cash reward components.
Concept tested: Total rewards definition in HR compensation
Source: https://www.shrm.org/topics-tools/topics/total-rewards
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