• Thursday, May 26, 2022

tec

Creating a Total Rewards Strategy

By: Eastern Eye Staff

Largely owing to the pandemic, compensation planning is now fraught. But it still must be done. Organizations must reshape their rewards approach to accommodate the emerging needs of our new business and social environment.

If anything, COVID-19 has accelerated an evolving focus on a total rewards strategy that encompasses factors such as pay transparency and environmental, social, and governance (ESG). But how do you create a total rewards strategy amid such disruption?

Let’s discuss.

What is Meant by Total Rewards?

Total rewards are all the pay, benefits, perks, and opportunities for growth and development an organization offers employees in exchange for their membership and performance. The goal is to motivate employees to remain engaged and productive.

Why is a Total Rewards Strategy So Important?

A total rewards strategy can be beneficial to an organization in several ways, including:

  • Getting a leg up on rivals. An attractive total rewards package may be just the thing that brings a candidate to your side, or that prevents a competitor from poaching your talent.
  • Outperforming rivals. Employees who are happy with their total rewards package will go out of their way to help drive profitability, which will ultimately result in superior organizational performance.
  • Maintaining positive employee performance.Companies can use total rewards as a tool to motivate their people to perform consistently well.
  • Providing growth opportunities. If you include career developmentin your total rewards program, you will motivate your employees to go all out for you. Along the way, they’ll develop skills and knowledge that will favorably affect your company’s performance.
  • Providing recognition and acknowledgment.Doing so when employees achieve objectives foments a positive work culture in which people feel encouraged to take on challenges and further their careers.

Creating a Total Rewards Strategy

There are steps you can take to develop a total rewards strategy that works for your organization:

  • Take stock of your existing pay and benefits strategy. Before you put something else in place you need to assess what you have now. If you already have an incentive that works – a cash bonus for exceeding sales goals, say – you can build off that and then fill in where you’re lacking.
  • Get insight. Ask your team for inputduring strategic planning and development. This will help you learn what’s been working and what hasn’t. Doing so also leads to the creation of a rewards strategy that incorporates everyone’s interests and abilities.
  • Design the strategy. Take what you learned from your teammates’ input, along with what you’re keeping from current incentives, and design your total rewards program. Make sure you build in how you’ll know when employees earn each incentive, including the meeting of certain milestones. Also,make sure there’s a space for the team as well as individual achievements.
  • Incorporate the strategy. Start by apprising everyone of the changes, making sure expectations and goals are fully understood. Also, make certain that it’s known how management will gauge progress.
  • Assess effectiveness. You must monitor what you put in place to make sure it’s working as designed. Look for increased employee performance and productivity, as well as achievement of key organizational goals. At length, you should see improvements across a myriad of company processes.

Creating an effective total rewards strategy is a must in today’s business environment. If you need help putting a strategy in place, particularly one that builds in ESG and other forward-thinking elements, we recommend the consultant Mercer, which has the experience and expertise to pull it all together.

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