By Kimihiro Ogusu, SHRM-SCP · October 7, 2026 · 4 min read
Two employers can offer the same base salary and very different employment packages. Health coverage, employee contributions, retirement benefits, time off and incentives all influence the offer.
Yet employees may compare only the most visible number. A total rewards review starts by making the rest of the package understandable—then considering whether it fits the workforce and the business.
Build an inventory before adding benefits.
List what the company offers today. For each item, record who is eligible, what the employer pays, what the employee pays and any significant conditions. Include base pay and incentives alongside health, retirement, leave, development and recognition.
Do not assume that a benefit listed in a handbook is understood or used. Check how employees learn about it and whether they can reasonably access it.
Keep different kinds of value separate.
Employer cost, employee value and cash compensation are different concepts. The cost of a medical plan is not extra cash in the employee’s paycheck. A target bonus is not a guaranteed award. Paid time off should not be counted as additional cash when it is already included in the salary figure.
A clear statement can show these elements side by side. It should also explain assumptions, eligibility and whether amounts are actual, estimated or contingent.
Ask what matters to this workforce.
The most useful package depends on employees’ needs and your hiring market. A benefit that matters to one workforce may be less valuable to another. Employee feedback can help you identify which offerings are appreciated, misunderstood or difficult to use.
Keep the discussion grounded in what the business can sustain. An attractive new benefit that is poorly implemented or quickly withdrawn can create confusion.
Connect the package to a strategy.
A practical review asks three questions:
- Where do we need to be competitive to attract and retain the people we need?
- Which parts of the package support that goal effectively?
- Which gaps need an investment, and which need a clearer explanation?
Then prioritize. You may need to adjust an offering, improve eligibility or communication, or simply give managers a more accurate way to describe the package.
Keep salary concerns in the conversation.
Total rewards can explain the broader offer. It should not be used to avoid a legitimate question about base pay. Review both: whether pay is appropriate for the role, and whether the overall employment package delivers the value you intend.
A credible story makes each element clear and connects the whole package to your company’s priorities.