Total Rewards for New and Old Economy Companies

Abstract

Traditionally, old and new economy companies have offered different types of pay solutions. Providing stock options, for example, has been a prominent feature of new economy companies, whereas old economy organizations focused on base pay and liberal benefits. However, the Internet has facilitated the blending of the old and new, and each finds the other increasingly attractive as a business partner. As a result, the differences between the two have begun to blur, and each, which had their "tried and true" reward strategies, must now realize that people work for more than just pay and evaluate "total rewards" for success. A total-rewards solution encompasses combinations of base pay, variable pay, recognition and benefits to create a win-win situation for the workforce and the organization.