Perhaps you’ve been taking something of a take-it-or-leave it approach when it comes to attracting, motivating, and retaining employees. And perhaps there was a time when that approach sufficed. Well, in case you haven’t noticed, times have changed. A lot. In fact, the pandemic has resulted in something of a labor force awakening. People are increasingly taking stock of how they want to make money, and where they want to work, if at all. So, you do need to get your rewards package right, even if that means pulling in a consultant to help you.
Here are the key elements of a great total rewards package, and more.
What Is An Employee Total Rewards Package?
This essentially describes anything an organization uses to lure, motivate, and hang on to employees. It’s a combo of benefits and pay and rewards, including wages and bonuses plus any work flexibility, recognition, and advancement opportunities.
What’s A Great Total Rewards Philosophy?
To succeed as an organization, you need the best talent possible. This entails stepping back and taking an all-encompassing view of what kind of employees you want to attract and keep, and why. So, view compensation in a holistic manner that includes multiple types of pay plus other niceties you can come up with to render your workplace more desirable.
What’s In A Great Total Rewards Package?
The best rewards package is a melding of monetary and non-monetary rewards. If you get total rewards right – a consultant such as Mercer can help – you’ll surely see increased loyalty and performance.
Here are the main elements of a total rewards package:
- Wages and salary. We’re talking more than base salaries. A great package would also include other kinds of pay that can get employees to perform at a high level, including, say, a variable pay system, or short-term incentive pay, that’s based on performance.
- Expanded benefits. Of course, you don’t have to just stick with legally mandated benefits such as Social Security, unemployment insurance, workers compensation, etc. You can attract top-shelf talent with a sweet vacation component, plus sick leave and bereavement leave. You can also develop and offer multiple kinds of retirement benefit plans.
- Work-Life balance. You’ll foster better moral within your organization if you create an environment that allows for and encourages periods of rest. Or, if employees are caring for elderly parents, say, offer flexible scheduling. Fitness facilities, health screenings and nutritional counseling are other possibilities.
- Recognition. You want your rewards philosophy to include peer and team recognition. Employee-of-the-month awards and appreciation luncheons also reap positive organizational benefits. If employees reach certain goals, they’re worthy of special recognition, too.
- Career development. Employees want to feel like you care about their livelihoods, and that includes opportunities for advancement. And if you do provide professional development, you’ll increase the odds that the employee will reward you with loyalty. You’ll also create a more skilled workforce. Think about offering technology training, tuition assistance, mentoring programs or seminars.
To have your company stand out in your industry, you need a solid rewards package. Employees these days have more of the upper hand, so you’re going to have to work a bit harder to bring them aboard, motivate them to perform, and keep them with you. It’s a tight balance because you do have to keep an eye on the bottom line. If you need help making sure you include all the key elements of a great rewards package, get a firm like Mercer to help you.
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