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.; “If companies conduct an analysis only on base pay, they could be leaving out important elements of total compensation,” said Emily Cervino, CEP, head of industry relationships and thought leadership at Fidelity Stock Plan Services.

This figure drops to 3% when using total cash compensation, which includes short-term incentives such as bonuses for achieving immediate goals like sales targets, and to 2% when using total direct compensation, which includes long-term incentives like stock-based rewards.

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Editor’s Note: Additional Content For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics: ;Employee Recognition; ;Finance and Budgeting; ;Organizational Performance; ;Sales Compensation; #1 Total Rewards & Comp Newsletter Subscribe to Workspan Weekly and always get the latest news on compensation and Total Rewards delivered directly to you.

As Fulmer and Li (2022, p. 158) summarized, “we know little about antecedents of organizations’ decisions regarding their overall total rewards system or practices, or about organizational consequences of total rewards systems.”

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