Towards Compassionate Total Rewards: COVID-19’s Clarion Call for a Paradigmatic Shift

The COVID-19 ‘new normal’ has forced organisations to reinvent business practices including rewards in order to retain and motivate employees. This article reviewed the published literature to identify the changing Total Rewards strategies adopted by firms in India as they navigated the various phases of this unprecedented pandemic. The review of academic papers as well as practitioner articles or news articles on relevant themes published in the period of 2020–2021 was followed by semi-structured interviews with 12 human resource practitioners working in the Compensation and Benefits or Total Rewards function across various organisations in India to arrive at the findings of the study. The study revealed that most firms have adopted a compassionate approach while reformulating their Total Rewards strategy. Agility, fairness and hyper-personalisation form the cornerstones for relooking at the Total Rewards dimensions such as pay, benefits, learning and development, and work environment. Spurred by the pandemic, the article highlights the endeavour of Indian firms to imbibe compassion into their Total Rewards strategies by being agile, fair and hyper-personalised. Further, it also lists potential challenges that Indian reward leaders might need to address to successfully implement and sustain a compassionate Total Rewards culture in their organisations.