'Strategic reward' takes a long-term approach to how an organisation’s reward policies and practices balance and support the needs of both the organisation and its employees. The concept of 'total reward' covers the tangible and intangible aspects of work that people value and may form part of a reward strategy.

This factsheet examines how to create a reward strategy, covering the reasons behind it, how to implement it, and offering guidance on key principles. It introduces the different aspects of total reward and then discusses the available approaches, as well as their pros and cons. 

Member tool: CIPD Buddy AI AI
Use AI to find trusted answers on our Knowledge hub. Start using CIPD Buddy AI

To continue reading, log in or become a member

Affiliate membership offers instant access to CIPD resources without the need for assessments or study, or explore your options to become a professional member of the CIPD to demonstrate your commitment to the world of work.

  • Access to exclusive, up-to-date resources
  • Become part of a community to learn, debate and connect with other people professionals
  • Free access to a series of CIPD learning courses and a discount on the rest of our catalogue
  • Data

    Gender pay gap

    Explore the CIPD's detailed analyses of 2025/2026 gender pay gap reporting in the UK and Northern Ireland, updated in May 2026. CIPD members can also download these datasets to benchmark and compare your organisation's performance against national data.

  • Data

    Pay intentions

    Stay up to date with the latest pay intentions among employers in the UK, with data analysis from the CIPD's Labour Market Outlook report. CIPD members can also download the data for use in your internal organisational benchmarking, discussions, and business cases.

  • Factsheet

    Recruitment: An introduction

    Facts on the recruitment and resourcing process; from defining the role to making the appointment

    For Members
  • Factsheet

    Flexible working practices

    Explores the benefits of flexible working, the types of arrangements commonly used and gives practical tips on implementing flexible working practices

    For Members
  • Factsheet

    PESTLE analysis

    Discover what PESTLE means, how it influences your organisation, plus a downloadable template

  • Factsheets