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While cash compensation is often the centerpiece of most rewards packages, rewards for North Carolina state employees go far beyond their salaries. State employees receive a number of valuable benefits, in addition to their regular pay. Many of these — such as health and retirement benefits — are being reduced drastically or phased out altogether by employers in the private sector. From a monetary standpoint, the basic benefits package for state employees amounts to about 44% of an employee's base pay. Other optional benefits programs can provide additional value to employees. This combination of compensation and benefits is often referred to as Total Compensation.

However, employee attraction and retention are not motivated by compensation and benefits alone. Work-life, recognition and development programs are equal, if not more important, factors. This combination of compensation, benefits, work-life, recognition and development is known as Total Rewards.

While cash compensation is an important factor in attracting new employees, "non-cash" rewards are actually more critical in retaining employees. The Business Research Lab reports that "the correlation between the length of time people intend to stay with their current employers and the recognition given for work that is well done is .27 -- a positive and statistically significant relationship. The relationship between monetary rewards and intention to stay also is positive, but somewhat less so." According to the Corporate Leadership Council, the top three drivers of an Employee Value Proposition, common to both employee attraction and commitment, are development opportunities, future career opportunities and respect — none of which are cash-based.

It is the responsibility of individual managers to help their employees with work-life balance, recognize them for a job well done and provide them with development opportunities. "Everyday recognition" can contribute to employee engagement in a much more meaningful way than formalized R&R programs such as service and longevity awards. However, the organization can also help provide a culture and environment for these Total Rewards programs to take root and foster workforce engagement.

It is likewise critical that an organization's Total Rewards package be conveyed to potential employees as a recruitment tool and to existing employees as a means of promoting retention. While human resources staff can aid and facilitate this communication, it is important that managers at all levels understand the total rewards concept and reinforce the message with their employees.

This section of the Performance Solutions website features information and tools to help HR professionals and line managers understand, explain and communicate the Total Rewards concept as it pertains to North Carolina state government.