What is total rewards?
Total rewards is the full value of everything an employee receives for their work. It includes base pay and variable pay, but also retirement contributions, insurance, benefits, holidays and time off, training and recognition.
The term is used in HR and pay policy to show that the salary on the payslip is only part of what an employee gets. For sales reps, variable pay is often a large part, but not all of it.
The elements of total rewards
| Element | Examples |
|---|---|
| Base pay | Base salary, allowances |
| Variable pay | Commission, bonuses, spiffs, contests |
| Retirement and insurance | Employer pension contributions, health insurance |
| Benefits | Company car, phone, internet, lunch scheme |
| Time off and flexibility | Holiday, extra days off, remote work |
| Development and recognition | Training, career paths, praise and visibility |
Example
An account executive has the following annual package:
| Element | Calculation | Value |
|---|---|---|
| Base salary | $90,000 | |
| Variable pay at 100% of target | $30,000 | |
| Employer retirement contribution | $90,000 × 5% | $4,500 |
| Benefits | $12,000 | |
| Total rewards | $90,000 + $30,000 + $4,500 + $12,000 | $136,500 |
By comparison, TTC, base plus variable at target, is $90,000 + $30,000 = $120,000. The $16,500 difference is retirement and benefits.
Total rewards vs. TTC and OTE
- OTE and TTC cover cash pay at 100% of target: base plus variable.
- Total rewards adds retirement, benefits and everything non-cash.
- Pay mix only describes the split between fixed and variable within the cash part.
In Denmark
- Pension often follows from a collective agreement or the employment contract.
- Benefits can be taxable for the employee. Check the rules at skat.dk.
- Pay transparency: in the EU Pay Transparency Directive, pay covers both base pay and any other consideration in cash or in kind. See also the guide to the directive and commission.
FAQ
What does total rewards mean?
The full value of what an employee receives: base and variable pay, retirement, benefits, time off, development and recognition.
What is the difference between total rewards and TTC?
TTC is base salary plus variable pay at 100% of target. Total rewards adds retirement, benefits and other non-cash elements.
Why does total rewards matter for sales reps?
Because reps often compare jobs on OTE alone. A full overview shows the value of retirement, benefits and development, which also affects whether a rep stays. See the guide to sales rep retention.
The variable part in Prowi
Prowi handles the variable part of total rewards: commission, bonuses and contests are calculated live from CRM data, reps see the amount in the mobile app, and approved amounts are passed on to payroll. Book a demo.
In Prowi
Every term on this page is a rule you can write into a commission model in Prowi. The model reads the deal from HubSpot the second it closes, applies the rule, and the rep sees the result on their phone before the day is over.