Question 1

What is Total Rewards?

Accepted Answer

Total Rewards is the complete set of tools an employer uses to attract, motivate and retain employees, including compensation, benefits, recognition, wellbeing and career growth.

Question 2

What is a compa-ratio?

Accepted Answer

Compa-ratio is an employee's salary divided by the midpoint of their salary range, expressed as a ratio or percentage, used to gauge position within a pay range.

Question 3

Is this platform a source of legal or tax advice?

Accepted Answer

No. Total Rewards Hub provides educational tools and general guidance only. Users should consult qualified professionals for legal, tax, payroll or financial decisions.

Question 4

What were 2026 salary increase budgets?

Accepted Answer

Mercer reported US 2026 actuals of 3.1% merit and 3.4% total increases against projections of 3.2% and 3.5%. WTW reported 3.5% for the US and UK. Deloitte India and Aon both projected approximately 9.1% for India. Figures vary by provider, sample and methodology.

Question 5

When did the EU Pay Transparency Directive take effect?

Accepted Answer

Directive (EU) 2023/970 entered into force on 6 June 2023 with a member state transposition deadline of 7 June 2026. It requires pay ranges for applicants, prohibits asking about pay history, mandates gender pay gap reporting, shifts the burden of proof to employers, and triggers a joint pay assessment where an unexplained gap of at least 5% in a category of equal-value work is not justified or remedied within six months.

Question 6

What is the difference between an RSU and a stock option?

Accepted Answer

A restricted stock unit is a promise to deliver shares at vesting with nothing to purchase, so it retains value as long as the shares are worth anything. A stock option gives the right to buy shares at a fixed strike price and has value only if the market price exceeds that strike; below it the option is underwater and worth nothing.