Introduction Functional Area Four

Total Rewards: Introduction

Total Rewards is HRCI’s Functional Area number 4.

This area considers a framework for managing the employment relationship between the organization and its workforce and accounts for 15% of the PHR exam and 12% of the SPHR exam.

As an HR professional, you must understand how to implement, promote, and manage compensation and benefits programs in compliance with federal laws and monitor the effectiveness of compensation and benefit strategies for attracting, rewarding, and retaining talent.

As a strategy, Total Rewards provides a way for HR Professionals to:

  • Identify value-added employment-related factors;
  • Prioritize the organization’s human resource investment;
  • Rationalize different components of compensation; and
  • Communicate the alignment between rewards and business strategies.


In this section, we will discuss the importance of developing a reward framework that aligns with short and long-term business needs.



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