total rewards

Definition

The complete package of compensation, benefits, perks, and non-monetary incentives offered to employees. What recruiters tout when the actual salary is disappointingly low.

Example Usage

Sure, the base salary is below market, but look at our total rewards package—we have free coffee and occasional pizza!

Origin

Popularized by WorldatWork (formerly American Compensation Association) in the 1990s

Fun Fact

Studies show employees typically only value total rewards at 60% of their actual cost, meaning that ping-pong table is worth less than you paid for it.

Source: Compensation and benefits strategy terminology

Related Terms

Intermediate

time-to-fill

The number of days between posting a job opening and a candidate accepting the offer. The metric that reveals how desperately understaffed you've been while HR 'sources quality candidates.'

👥 Human Resources

Beginner

EAP

Employee Assistance Program—a confidential service offering counseling, legal advice, and wellness resources, theoretically showing the company cares about your mental health while spending minimal money on actual support. The corporate equivalent of thoughts and prayers.

👥 Human Resources

Beginner

diversity

The corporate buzzword for having a workplace that actually reflects what the real world looks like, rather than a 1950s country club. It's the intentional inclusion of people from different backgrounds, races, genders, and experiences, ideally moving beyond token representation to genuine equality. When done right, it's transformative; when done wrong, it's a checkbox on a compliance form.

👥 Human Resources

Intermediate

exempt

An employee classification that sounds like a get-out-of-jail-free card but actually means you're exempt from overtime pay, not from working yourself to death. Under the Fair Labor Standards Act, these salaried professionals can work 60-hour weeks without seeing an extra dime, all because they're deemed 'executive' or 'professional' enough. The cruel irony is that being exempt often means you're imprisoned by your inbox 24/7.

👥 Human Resources

Intermediate

time to hire

The number of days between when a candidate enters your pipeline and when they accept an offer, measuring recruitment efficiency. Different from 'time to fill' which starts when the requisition opens—HR loves having multiple confusing metrics.

👥 Human Resources

Beginner

total compensation package

The art of making a mediocre salary sound impressive by including things you already expected, like health insurance and the privilege of occasionally working from home. It's what recruiters mention when the actual paycheck is disappointing.

👥 Human Resources

Translate This Term

See “total rewards” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

Try the Translator

Share This Term

Post on X Share on Facebook Share on LinkedIn

Discover a Term

Intermediate

FOB

Forward Operating Base — a secured military position used to support tactical operations. Think of it as a really terr...