29 Oct Why Employee Education Matters for Total Rewards Success
Designing a total rewards program can be a complex endeavor for many employers. It requires a thoughtful blending of company culture, management philosophy, employee value proposition, and business strategy. There must also be a balance among the key program elements, including base pay, STIs and bonusses, benefits, LTIs and any additional perks the employer wishes to include. While the process requires an investment of time and effort, with some careful planning and review of the business’s key values, it becomes possible to create a compelling employee value proposition that drives employee behaviours needed to achieve desired business results. Nonetheless, even the most thoughtful and strategically developed rewards programs require one final element: employee education.
Employee Education: The Missing Link
Without employee education, the value of a total rewards program is greatly diminished. In order for employees to understand all of the valuable offerings available to them, employers must become active in providing employee education. When it comes to total rewards, transparency – not secrecy – is always the best approach.
Example: Whole Foods
One company who is a leader in this area of pay transparency is Whole Foods. They have focused on a culture of openness and information sharing for the past 30 years that has propelled their company into world class status. Employers should also be aware that Canada faces new laws relating to disclosing pay information. To ensure an attitude of ongoing risk management, employers must always make equitable and defensible decisions.
Beyond Base Pay
Most importantly, companies can communicate an attractive employee value proposition by emphasizing the fact that total rewards is more than just base pay. By demonstrating the value that has been put into their teams and showing where they have gone above and beyond legislative minimums, employers can create and sustain a rewards program that encourages the performance outcomes that will propel the company forward.
HRsoft is the industry leader for compensation planning and total rewards software. Our cloud based SaaS solutions combine best of breed features with an intuitive, easy-to-use interface that simplifies and automates the entire compensation process helping companies save time and their best employees.