Companies operate in competitive markets, and they need to attract and retain talented employees.
One of the most important factors for any employee are the rewards offered. This makes the total reward program a vital consideration for your company.
By putting together a total rewards package that meshes with your company’s culture, business strategy, management practices, and overall mission, you may increase productivity, cohesion, and more. However, putting together a total rewards package can be difficult, especially given how unpredictable the current business environment is.
“Total” is the keyword here. A total rewards package will include the most common benefits, including:
- Salary and monetary bonuses
- Health insurance and life insurance
- Vacation and personal days
- Sick days
However, a complete rewards packaging can include many other things:
- Performance reviews
- Awards and recognition
- Career development
- Work-life balance
Determining the right mix of rewards is difficult, especially when you consider the demographics of your employees and geography. Many companies operate globally and needs can vary tremendously from region to region. Add in geopolitical factors and public policies, and operations grow more complex.
Meanwhile, every company has to consider its own financial situation. All of this complexity makes it vital to break down individual considerations.
What is your rewards package designed for?
A company rewards package is designed to attract employees and ensure that they stick with your firm. A total rewards package should increase engagement and motivation. This package will help your business achieve both its short- and long-term goals by ensuring a capable workforce.
A complete financial compensation plan
Consider the base salaries offered to all of your employees and pay raises. Consider offering short-term incentives, such as quarterly bonuses, to every employee. You can leverage long-term incentive plans to engage managers and high-potential employees.
Compensation is often tied to performance and meeting long and short-term goals. A company’s ability to pay is tied to its performance and competitiveness in the market. Successful, efficient companies will have an easier time paying for raises and bonuses.
What does work-life balance look like?
Many employees are demanding increased work-life balance. This includes not only more vacation days but also shortening commutes, reducing unnecessary (and especially unpaid) overtime, and other things. If your office is located in a congested area, perhaps allowing some work-from-home days or flexible hours so people can avoid rush hour could enable better work-life balance.
Globally nuanced benefits packages
Keep in mind that conditions can vary dramatically from country to country, or even from region to region within a country. Make sure you optimize your total rewards package for each locale. What works in one country may not work in another.
Make sure your company can attract the talent
Your company needs to attract and retain talent. The right total rewards program will make it easier for you to attract talent and ensure that they stay on staff. Companies that offer subpar rewards will struggle to attract talented staff. Even if you offer a great base salary, poor work-life balance or a lack of performance-based incentives could undermine your business.
Take away: A holistic rewards package will help your company grow
Over time, companies mature and the right rewards and benefit models can ensure a competitive edge. By using sound compensation models and other benefits packages, you can support your company’s continued growth and success.
HRsoft is a leading provider of total rewards software that enables the continuous communication of the full value of employment to the entire workforce. Get more information on our Total Rewards solution.