Essential Work Sample Exercises for Hiring a Top Total Rewards Manager

The Total Rewards Manager role is pivotal in shaping an organization's ability to attract, retain, and motivate top talent. This position requires a unique blend of analytical prowess, strategic thinking, and interpersonal skills to develop compensation and benefits programs that align with business objectives while meeting employee needs.

Finding the right Total Rewards Manager can significantly impact your organization's talent strategy and financial health. Traditional interviews often fail to reveal a candidate's true capabilities in designing effective compensation structures, conducting meaningful market analyses, or communicating complex benefits information to stakeholders.

Work sample exercises provide a window into how candidates approach real-world challenges they'll face in the role. By observing candidates tackle authentic Total Rewards scenarios, hiring managers can assess technical expertise, problem-solving approaches, and communication skills simultaneously.

The following exercises are designed to evaluate candidates' abilities across the core competencies required for Total Rewards excellence: data analysis, strategic planning, compliance knowledge, and stakeholder communication. Each exercise simulates a task the successful candidate will likely encounter within their first year in the role, providing valuable insight into their potential performance.

Activity #1: Compensation Benchmarking Analysis

This exercise evaluates a candidate's ability to analyze market data, interpret compensation trends, and make strategic recommendations. Compensation benchmarking is a fundamental skill for Total Rewards Managers, requiring both technical analysis capabilities and strategic thinking to ensure the organization remains competitive while managing costs effectively.

Directions for the Company:

• Prepare a dataset containing anonymized job titles, current salary ranges, and basic market data for 5-7 positions across 2-3 departments.
• Include some positions that are clearly misaligned with market rates (both above and below market).
• Provide industry context and company size information to help the candidate contextualize the data.
• Allow candidates 45-60 minutes to complete the analysis.
• Prepare a computer with Excel or similar spreadsheet software for the candidate to use.

Directions for the Candidate:

• Review the provided compensation data and market benchmarks.
• Analyze the current compensation structure against market data to identify positions that are misaligned with market rates.
• Create a spreadsheet that shows your analysis methodology and findings.
• Prepare recommendations for addressing any misalignments, including estimated budget impact.
• Be prepared to present your findings and recommendations in a 10-minute presentation, followed by 5 minutes of questions.

Feedback Mechanism:

• After the presentation, provide feedback on one analytical strength demonstrated and one area where the analysis could be more comprehensive or strategic.
• Ask the candidate to verbally revise one of their recommendations based on the feedback, giving them 5 minutes to consider and present their adjusted approach.
• Evaluate how receptive the candidate is to feedback and their ability to incorporate new perspectives into their thinking.

Activity #2: Total Rewards Strategy Presentation

This exercise assesses a candidate's strategic vision and ability to align total rewards programs with business objectives. It tests their knowledge of current trends in compensation and benefits while evaluating their communication skills when presenting complex information to leadership.

Directions for the Company:

• Create a brief case study about a fictional company facing specific talent challenges (e.g., high turnover in key roles, difficulty attracting specialized talent, or upcoming expansion).
• Include basic information about the company's industry, size, financial constraints, and current total rewards approach.
• Send the case study to candidates 24-48 hours before the interview.
• Assemble a small panel (2-3 people) to represent the "executive team" receiving the presentation.

Directions for the Candidate:

• Review the case study and develop a comprehensive total rewards strategy to address the company's talent challenges.
• Prepare a 15-minute presentation outlining:
• Your assessment of current total rewards gaps
• Proposed strategy changes with rationale
• Implementation timeline and key milestones
• Metrics to evaluate success
• Estimated budget impact
• Be prepared to answer questions from the "executive team" for 10 minutes following your presentation.
• Focus on practical, innovative solutions that balance employee needs with business constraints.

Feedback Mechanism:

• After the presentation and Q&A, provide feedback on one aspect of the strategy that was particularly strong and one area that could be enhanced.
• Ask the candidate to spend 5 minutes refining their approach to the area needing improvement.
• Observe how the candidate handles constructive criticism and their ability to think on their feet when adjusting their strategy.

Activity #3: Pay Equity Analysis and Recommendation

This exercise evaluates a candidate's understanding of pay equity principles, analytical capabilities, and ability to develop sensitive recommendations. It tests their knowledge of compliance requirements while assessing their approach to a complex issue with legal and cultural implications.

Directions for the Company:

• Create a dataset with anonymized employee information for a department of 20-30 employees, including factors such as job level, tenure, performance ratings, education, and current compensation.
• Intentionally include some patterns that suggest potential pay equity issues (e.g., gender or tenure-based disparities).
• Provide basic information about the company's compensation philosophy and relevant legal jurisdiction.
• Allow candidates 60-75 minutes to complete the analysis.

Directions for the Candidate:

• Analyze the provided dataset to identify any potential pay equity issues.
• Determine which factors legitimately influence compensation differences and which patterns may indicate problematic disparities.
• Develop a plan to address any identified equity issues, including:
• Recommended adjustments with estimated costs
• Implementation approach that minimizes legal risk
• Communication strategy for affected employees and managers
• Long-term preventive measures
• Document your methodology, findings, and recommendations in a format that could be presented to legal counsel and executive leadership.

Feedback Mechanism:

• Provide feedback on the thoroughness of the analysis and one aspect of the recommendation that could be strengthened.
• Ask the candidate to revise their communication strategy based on the feedback provided.
• Evaluate the candidate's understanding of the sensitivity around pay equity issues and their ability to balance legal compliance with practical implementation concerns.

Activity #4: Benefits Program Evaluation and Optimization

This exercise assesses a candidate's ability to evaluate the effectiveness of benefits programs and identify opportunities for optimization. It tests their knowledge of current benefits trends, cost management strategies, and employee value proposition development.

Directions for the Company:

• Prepare a case study with information about a fictional company's current benefits program, including costs, utilization rates, and employee satisfaction data.
• Include benchmark data showing how the program compares to industry standards.
• Provide context about the company's workforce demographics and business priorities.
• Include a specific budget constraint for any recommended changes (e.g., "any changes must be cost-neutral or reduce costs by 5%