Modern Approaches to Total Rewards: Why Recognition Matters

Today's workplace isn't just about paychecks and perks. It's about the whole experience. A modern total rewards strategy covers it all: compensation, benefits, career growth, well-being, and, of course, recognition.

Employee recognition is like a secret sauce that makes everything better. It fuels engagement, builds an awesome culture, and makes people feel genuinely appreciated. Let’s take a closer look at why it’s a must-have for your total rewards strategy, and how to do it.

What is a total rewards strategy?

A total rewards strategy encompasses everything an employee gets from their workplace. In addition to pay and benefits, they get pleasant cultural experiences, resources to improve well-being, and more.

Here’s an example of what an organization’s total reward strategy may include:

• Compensation. Salary, hourly pay, commissions, bonuses, and other strictly monetary benefits.
• Benefits. Health, vision, and dental insurance. PTO, parental leave, and 401 (k) contributions.
• Well-being. Scheduling flexibility, remote options, fitness/gym reimbursements, and employee assistance programs (EAPs).
• Growth and development. Training, mentorship, career pathing, certification or tuition reimbursements.
• Recognition and culture. Team celebrations and rituals, peer recognition, awards, rewards, and meaningful work.

Why add recognition to a total rewards strategy?

Not feeling valued leads people to feel that a workplace doesn’t respect their contributions. This is a key reason for low engagement, retention, and morale. The entire purpose of recognition is to make people feel seen, included, and respected.

It’s also good to know that recognition is a much larger part of a total rewards strategy than its traditional categorization implies. In truth, perks like mentorship and scheduling flexibility are forms of recognition, too.

If you want to go from being a standard “pay and benefits” company to an awesome place to work, a well-done recognition program can do it all on its own.

How to use recognition as part of your total rewards strategy

When recognition is baked into your company culture, it helps you attract top talent, keep teams motivated, and boost retention.

Let’s break it down into three easy stages: Attract, Engage, and Retain.

Attract: Recognition that reels people in.
Want to stand out and snag top talent? Show them the love from the start! Instead of just saying you have a "great culture," prove it with your recognition game.

• Put recognition in the spotlight. Shout about your recognition programs in job postings. Let candidates see how much you value your people.
• Show, don’t just tell. During interviews, give candidates a sneak peek at how your team celebrates wins. Let them check out recognition in action via your Slack or Teams channels.
• Make it a selling point. People want to work where they feel valued. Share feel-good stories of how recognition has made an impact on your team.

Engage: Recognition that sticks.

Make recognition a fun and regular part of your team’s day-to-day—don’t let it be an afterthought!

• Create fun rituals. Start weekly and monthly habits like:
• Taco Tuesday shoutouts
• Monthly top taco givers and receivers celebration
• Peer-nominated awards for living out company values, AKA the Core Values MVP
• Take it beyond the app. Recognition isn’t just a button click. Bring it into team meetings, shoutouts in all-hands, and 1:1s to keep it fresh and personal. End live meetings with a gratitude section.
• Get everyone involved. Recognition works best when it's a team effort. Empower your team to come up with new, fun ways to celebrate each other. Don’t leave it all up to HR and people teams.

Retain: Recognition that grows with you.

Keeping great people means keeping your recognition game strong and evolving with their needs.

• Mix it up. Stay flexible! Keep an ear out for feedback and tweak your rewards and rituals to fit changing preferences.
• Speak their appreciation language. Not everyone loves a public shoutout or a gift card—some might prefer a thoughtful note or an extra coffee break. Be mindful of everyone’s appreciation language. Tailor recognition and rewards accordingly.
• Make it personal. Treat recognition as an n=1 experience. Keep track of what works best for each person and make it count. Does it work? Yes. Is it worth it? 100%yes.

Nothing’s more rewarding than real recognition.

Recognition isn’t just part of a total rewards strategy. It’s what takes pay and benefits to the next, more rewarding level. HeyTaco is a lightweight, lighthearted way to strengthen culture, celebrate team wins, and make everyone feel seen, welcomed, and respected.

“It's simple, fast, and creates an instant boost in morale. People love getting acknowledged publicly, and the taco format makes it feel fun rather than forced. It's especially great in remote teams where spontaneous praise is harder to give. It also encourages a culture of gratitude.”

• Samantha G., Proposal Manager

Want to learn more about how HeyTaco can help? Check it out here.