How to build a total rewards program that amazes and engages employees

What makes people want to stay and give their best? Hint: It’s not just the paycheck. Compensation matters, but it’s only one piece of a much bigger picture. The real magic happens when organizations deliver a total rewards experience that speaks to the whole employee — recognition, growth, well-being, and all.

And it works. Companies with strong recognition programs see 31% lower voluntary turnover. That’s not fluff — it’s ROI in action.

But here’s the truth: A few perks and a pizza party won’t cut it. Building a rewards strategy that actually inspires your people takes thought, intention, and a platform that knows what it’s doing (spoiler — we do).

So how do you create a total rewards program that employees don’t just tolerate — but actually get excited about? We’ll walk you through the essentials, share what works, and help you shape a strategy that keeps your people engaged, energized, and ready to achieve.

The building blocks of a total rewards program — and why they actually matter

Total rewards is a bit of a misnomer. It’s not just about rewards — it’s about the full experience of working for your organization. Yes, that includes pay. But it also includes everything else that makes your people feel supported, valued, and motivated to stick around and do their best work. Let’s break down the essentials.

Financial compensation: The must-have

Money isn’t everything — but let’s not kid ourselves, it matters. Competitive compensation is the foundation of any rewards strategy. Without it, the rest of your offering is on shaky ground (no matter how great your snack wall is).

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Recognition: The performance multiplier

When people feel seen, they show up. That’s why employee recognition — especially when it’s timely, specific, and frequent — plays a starring role in any total rewards strategy. And while financial rewards like gift cards are great, research shows that meaningful, non-monetary recognition can pack an even bigger punch.

Culture doesn’t build itself — but recognition helps shape it.

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Benefits and incentives: The standouts

Think of these as the extras that help people choose your organization — and stay. Healthcare, paid time off, and retirement plans are table stakes. But when you offer flexible work, tuition support, or even the ability to choose projects, you’re signaling that your employees matter as people, not just performers.

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Why total rewards are worth the effort (and then some)

Building a standout total rewards program isn’t something you knock out over a long weekend. It takes time, strategy, and a bit of internal soul-searching. But the payoff? Absolutely worth it. Here’s what’s in it for your organization — beyond the warm, fuzzy feeling of doing right by your people:

• More engagement — less coasting: When employees feel appreciated, they bring more to the table. Recognition is the single biggest driver of engagement — not ping pong tables, not free snacks. (Sorry, snacks.) A thoughtful total rewards program shows employees that what they do matters — and that motivates them to keep doing it, and doing it well.
• A reputation that does the recruiting for you: The best employer brands aren’t built in boardrooms — they’re built on word of mouth. And nothing gets people talking like a rewards program that makes them feel seen, supported, and celebrated. When your team brags about their experience, the right candidates start knocking. No paid campaign can beat genuine employee enthusiasm.
• Retention that doesn’t require begging: Keeping great people is hard. Giving them reasons to stay makes it easier. When employees know they’re getting more than a paycheck — things like flexible perks, real recognition, and growth opportunities — they’re less likely to shop around. Bonus points if they actually know what rewards are available to them (so, yes — communicate often).
• A stronger employee value proposition (aka your secret weapon): Your EVP is your promise to your people — and total rewards is a huge part of it. If your benefits don’t reflect what employees care about, they’ll notice — and so will your talent pipeline. But when your rewards are aligned with what matters most, your EVP becomes a magnet for top talent (and a reason for your best people to stick around).

Bottom line? Total rewards isn’t just a checkbox — it’s a competitive advantage. Invest in it, shape it thoughtfully, and don’t forget to make it personal. Your future workforce will thank you.

4 simple (but powerful) steps to build a winning total rewards strategy

Launching or leveling up a total rewards strategy? Excellent choice. Total rewards is more than a buzzword — it’s your lever for engagement, retention, and all-around workplace greatness. But let’s be honest: it takes more than a few gift cards and well-meaning memos to make it work.

Here’s how to build a total rewards program your people will actually care about — and use:

1. Make recognition easy (and points-based)

Recognition is the beating heart of total rewards — and the more accessible it is, the more it flows. A points-based rewards system gives employees a simple, fun way to recognize each other with real impact. Think of it as appreciation with perks.

Employees earn points they can hand out when they say thanks. Recipients then redeem those points for rewards they actually want (yes, actually). It’s a system that turns gratitude into something tangible — and keeps it circulating throughout your culture.

2. Offer incentives your people actually want

You could offer employee gifts like artisanal candle-making kits and llama yoga passes… but if that’s not what your people value, it’s a miss. Instead of guessing, ask. But do it the smart way — anonymously, in real time, with tools like pulse surveys and always-on feedback channels.

That way, you’re not stuck relying on a once-a-year “what do you want” meeting where everyone forgets what they were going to say anyway. Real insights lead to real alignment — and rewards that hit the mark.

3. Communicate it like it matters (because it does)

Even the best total rewards program falls flat if no one knows it exists. Build a clear, consistent employee communication plan that kicks in from day one — during onboarding — and keeps employees in the loop with regular, easy-to-read updates.

Total rewards statements are a great way to do this. Just keep them organized, relevant, and realistic — no inflated values or “we promise this is worth $400” type claims. Deliver them privately (bonus points for personalization) and revisit them at least once a year.

4. Keep your finger on the pulse — and adjust

A total rewards program isn’t a “set it and forget it” initiative. You’ve got to listen, adapt, and evolve. Use employee feedback and behavioral data to see what’s working — and what’s just taking up budget.

If recognition is low and gym memberships are going unused, it might be time to shift funds where they’ll make a bigger impact. Spotlight underappreciated contributors, create new reward opportunities, and turn insights into action. That’s what makes your program credible — and powerful.

Take your total rewards program from “fine” to unforgettable

Sure, competitive pay and solid benefits are important — no one’s turning those down. But if you want to build a rewards program that actually moves the needle, you’ve got to go further. Think recognition. Think purpose. Think people-first, not perks-only.

That’s where Achievers comes in.

Our platform makes it easy to embed recognition into your total rewards strategy — not as an afterthought, but as a foundation. With tools that encourage frequent, meaningful appreciation, we help organizations turn great intentions into daily habits that actually stick.

The result? A company culture where employees feel supported, celebrated, and ready to bring their best — not just because they’re paid to, but because they want to.

Invest in the tools that shape behavior and build connection. With Achievers, recognition doesn’t just complement your total rewards program — it elevates it.

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