20 Oct Total Rewards Philosophy: Tools for Engaging & Retaining Employees
Do your employees know exactly how well taken care of they are by your organization? Do you spend a lot of time researching competitors, drafting compensation strategies and determining just the right pay scales and grades? Employers are always interested in what they can do to engage their employees and ensure that their needs are met.
Treating Your Employees Like Your Customers
Just like a buying customer, employees are always looking for a position with the best opportunity and fit. It may surprise you that more than 70% of workers do not know all the perks that they receive access to courtesy of their employers. For them compensation begins and ends with the dollars in their account. What about the growth opportunities, the retirement savings, the health benefits and the cash rewards for performance? These often go unnoticed. A total rewards philosophy consists of personalized statements that:
- Are easy to access and available to employees without the need to follow tedious protocol
- Break down their cash compensation into bonuses, spot rewards, base pay and performance dependent variable pay
- Provide a snapshot of all the plans and benefits employers provide (including 401K and health insurance)
- Personalize the experience by drawing attention to the perks that make the most sense to the employee (like highlighting a gym membership to health conscious Millennials)
- Also include intangibles like training and growth opportunities with financial equivalents
With a strategic total rewards philosophy, companies can:
- Retain key talent by showing them what they stand to lose if they walk away
- Engage employees by inspiring gratitude for the various financial perks and growth opportunities
- Attract top talent by acquiring a reputation of being excellent employers
- Be more competitive with compensation by taking employee focus away from only the dollars and pennies and helping them think more holistically
It is important to make employees aware of the benefits your company provides them with. Just like a customer, if employees don’t feel valued and important, they may start to look for other opportunities.