This paper aims at comparing and contrasting the total rewards system with the traditional approach of compensation. Also, the paper will discuss in detail the advantages and disadvantages of total rewards program from the views of the employees as well as from the perspective of employers. A brief discussion of how total rewards are impacted by the legal environment has also been included. Total Rewards: Rewards have been a common element right from the beginning. Be it the barter systems used in the early years or the various compensation plans used in the current times. These have all been the basis for the motivation of people across the world. It was in 1990 that the system of total rewards was introduced and here people around the world were thinking of newer and more effective ways for compensations and benefits (Chen and Hsieh). Also, it was here that aspects such as tangible and intangible methods of motivating employees were being focused upon. The main aim and intension of the total rewards was mainly to retain the employees within the company (Johnston). The following section will detail a comparison and contrast of the total rewards system with the traditional approach of compensation. … The traditional method of rewards was the same for all employees within the company, the total rewards system on the other hand is focused on only working towards retaining the best in the company. In the traditional approach, the compensations re generally bargain able and employers have a chance to bargain with the employees based on the job market. On the other hand, the total reward style of remuneration is based more so on the employees and their individual value. Another major difference here is that the total rewards are focused on all aspects of the pay, the entire remuneration, including all the direct as well as indirect wages and also prerequisites likewise (Reference for Business). The traditional system however focuses on the basic pay and the added benefits based on the individuals contracts. The traditional approach is more focused on aspects like the hierarchy of the individual, and the position within the company. On the other hand for the total rewards, the focus is more on the individuals work performance and skills (Reynolds). Here hierarchy does not play a major role. Advantages and Disadvantages: Total rewards system have a number of advantages and disadvantages likewise. The following sub sections will detail the advantages and disadvantages from the view of the employer and the employees. Employer’s Perspective: The total rewards in terms of the employer’s perspective, there are a number of issues. Firstly, this proves to be a more expensive approach. The company can have a much higher level of cost savings if another method of payment is to be used for the employees. Also, this method can lead to a number of additional and unnecessary