If you haven’t learned this already, you certainly will: it takes more than great pay and benefits to attract and retain workers. More than ever, with traditional workplaces models upended, you need to take a new look at shaping your employee rewards strategy. After all, employees these days want more from you, and since satisfied employees lead to satisfied customers, the line between your workforce and your bottom line may be more direct than you think.
Pay equity and fairness was in the news a lot lately even before the pandemic. It’s been a hot topic. But COVID-19 has shaken everything up — including how people view employment and employers. No longer can the tried-and-true primo “pay and benefits package” be counted on to get or keep that talent. However, if employees see that you’re willing to go beyond the norm for them, they’ll give you all they have.
So, organizations are revisiting their employee rewards strategy to get through the economic and social upheaval that we see today — and building in much-needed agility. The ability to pivot is paramount. But if you aren’t including data and analytics in your reshaping, you’re not doing it right.
What’s a Total Rewards Strategy?
It’s the system an organization establishes that provides money, benefits, and developmental rewards to attract and retain employees that meet certain business objectives. The best reward strategies marry the monetary with benefits with opportunities for professional advancement, by the way. These can get employees hyped enough to stay engaged and productive.
What are the Advantages of Total Rewards?
We’ve already alluded to them but here are some of the chief advantages of total rewards, although your mileage may vary:
Topping rivals. Of course, one of the top reasons to use total rewards is to be able to offer a package filled with enough goodies to either attract a prospective employee or keep another from jumping ship. You want to be able to offer something the competition can’t or doesn’t.
Lure and retain top talent. You naturally want to best the competition, but you also want a strategy that brings people in and gets them to stay.
Motivate employees. Total rewards can also be used to get employees to do what you want them to, basically. Using the strategy as a motivation tool can result in a more engaged and productive workforce.
Provide career development. Everybody wants to feel like they’re getting somewhere and are a part of something bigger than themselves. Development opportunities motivate employees and those you seek to employ.
Recognition. It’s only human nature for employees to appreciate recognition, should they exceed expectations. This also promotes a positive workplace, which promotes productivity.
What’s the Best Total Rewards Strategy?
According to HR consultant Mercer, you want a strategy that factors in multiple perspectives, including those of the employer and employees, and considers the market and cost.
You also want data that assess employee attitudes and behavior, and to be able to pinpoint workforce segments that possess special needs and vales.
Finally, an effective strategy is one that uses rewards programs to promote engagement and get employees to amend behavior for the better.
When shaping your employee rewards strategy, you want a consultant that can help you lure, keep, engage, and motive your workforce. We’ve found that Mercer offers an enhanced perspective of employee rewards that ultimately improves the employee experience. Organizations that produce stimulating experiences will be the ones with the top, most productive talent.