Glossary — Benefits

Total rewards

The full value of compensation including wages, benefits, paid time off, equity, and non-cash perks.

Definition

Total rewards is the comprehensive view of what an employee receives in exchange for work — base pay, variable pay (bonuses, commissions, equity), benefits (health, dental, vision, retirement, disability, life), paid time off, perks (gym, learning stipends, parking), and intangibles (culture, development, schedule flexibility).

The total rewards lens matters because employees evaluate offers holistically. A PEO that delivers $300/employee/month of benefits value is creating $3,600/employee/year of total rewards — material against a $50K wage.

Common questions about Total rewards

The full value of compensation including wages, benefits, paid time off, equity, and non-cash perks.

Total rewards is the comprehensive view of what an employee receives in exchange for work — base pay, variable pay (bonuses, commissions, equity), benefits (health, dental, vision, retirement, disability, life), paid time off, perks (gym, learning stipends, parking), and intangibles (culture, development, schedule flexibility).The total rewards lens matters because employees evaluate offers holistically.

Most PEO buying decisions touch several related concepts at once. Total rewards typically comes up alongside the other terms in this category. Closely related terms include Group health insurance, Per Employee Per Month (PEPM).

Browse the full PEO glossary

This is one entry from our PEO glossary covering payroll, benefits, workers comp, HR compliance, and PEO mechanics. Browse all terms.

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