Final answer:
A framework for distributing both monetary and nonmonetary compensation is known as a total rewards strategy. Organizations design compensation programs that go beyond just salary or wages and include elements like health benefits and retirement plans.
Step-by-step explanation:
A framework for distributing both monetary and nonmonetary compensation is known as a total rewards strategy.
Under a total rewards strategy, organizations design compensation programs that go beyond just salary or wages. It includes various elements such as supplemental pay, health benefits, retirement and savings plans, employer payments to Social Security, and other benefits like insurance and Medicare.
For example, an organization may offer health insurance as part of its total rewards strategy, providing employees with coverage for medical expenses. Another element could be a retirement plan, where employees receive contributions from their employer to help fund their post-work life. These components are designed to attract, retain, and motivate employees by offering them a comprehensive package of both monetary and nonmonetary rewards.