What is your philosophy? It is important that organizations establish a total rewards philosophy as this guides the decision-making as to what the organization will offer to its employees. If the company adopts a “Risk/Reward” philosophy, then more emphasis will be placed on performance-based incentive plans/payouts and base pay will tend to be below market level midpoint by roughly 10 – 15%. If an organization adopts the “Employer of Choice” total rewards philosophy, it is making a commitment to offer a total package that attracts qualified candidates to the compensation/ benefits leader organization. If a company adopts a “Maintain Market Level” philosophy, a majority of the employees will be paid and continue to be paid around the market level midpoint, and benefit and incentives will be at the norm levels.