Effective total pay system covers base pay, skills and competency pay, variable performance pay, recognition, and benefits. To convey the proper messages, remuneration objectives and strategies should be aligned with the overall business strategy of the organization. Rewards commune the value that organizations place on their employees. The best way the organization can deliver the correct reward, is to implement a total reward system together with a total pay system. Knowing alignment will enable organizations to deliver the right type of rewards to the right people, at the right time, and for the right reasons. Total reward system cover investment in people, development and training, performance management, and career management. Therefore, to motivate and retain employees, and to improve organization’s profitability, a right mix of total pay and total rewards should be made available to employees as employees’ needs differ.