28 Dec Selecting Components and Categories for Your Total Rewards Strategy
While you’re already familiar with the main components of Total Rewards (TR) statements, there are also many extra elements you may want to consider including in your statements. It’s important to choose these carefully, because depending on your company values and culture, some elements may resonate better with employees than others.
In addition, breaking the TR Communication into logical sections will make the presentation easier for your employees. It will also help in organizing the design and data transfer of appropriate information.
Here’s how you can get started with selecting the components to include in your employee benefits statements.
Step 1: Prioritize
Consider what is important for you to emphasize. Make sure those elements are included first. (You can always add items later.) Once you’ve established what’s most important in your company, you can then begin incorporating these pieces into the framework, which we’ll describe in the next step.
Step 2: Follow The Framework
WorldatWork, a global human resources association, created a framework for employers to consider. It comprises five elements:
- Performance & Recognition
- Development & Career Opportunities
Additional information about many aspects of Total Rewards and the framework developed by WorldatWork is available at www.worldatwork.org, but for now, you can use this brief overview to guide you in developing a rough outline of what your total rewards strategy should look like.
The five reward categories in this framework can be used as the sections of a statement or pages used with an online Total Rewards Communication presentation. A number of employers use this protocol, or a variation of it, in their design and communication of Total Rewards.
Step 3: Get Specific
Now, you can begin to go into greater detail for each of the five components. Take a look at the descriptions of each, listed below:
- Compensation covers Base Pay, Premium Pay and Variable Pay. Commissions and different bonuses and incentives are itemized.
- Benefits presents the value of the medical insurance plan and can show the employer and employee contributions. Life insurance and other health and welfare items can also be included: vision, dental, prescription, disability, etc. Retirement Plans, Social Security Insurance, Profit Sharing and other elements can fall under this category.
- Work-Life covers Maternity/Paternity Leave, Adoption Leave, Health and Wellness items, Nurse Line, Health Advocacy, Dependent Care, Community and Charitable Donation programs.
- Performance and Recognition can include information about awards, performance goals and specific programs for eligible employees. Sales achievements and other production-related metrics can be described here.
- Development and Career Opportunities. In this section, you can show Learning, Tuition Reimbursement and Leadership Training. Employers can include links to available positions on their Career Site. The message is: the company wants employees to be successful, and there are ways to advance career goals.
This outline is intended to help you design your own successful employee benefits statement. Of course, you can tailor the above framework so that it best fits your company goals.
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