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- What Is A Total Rewards Strategy?
- The Five Components of Total Rewards
- Why Does Your Organization Need A Total Rewards Strategy?
- How Do You Create A Total Rewards Strategy?
- To Summarize
A total rewards strategy is a coordinated effort driven by an organization’s overall business strategy to develop a workforce motivated towards excellence and growing with the organization through an effective and inclusive rewards package. This package is a combination of all the benefits, perks, incentives, guidelines, processes, programs, and ot...
WorldatWork identifies these five elements that make up Total Rewards. The correlation to Maslow’s hierarchy of needs is italicized. The five Total Rewards components are: 1. Compensation – This refers to pay (base and variable) that employers provide to employees in exchange for skills applied, qualifications earned, time given, efforts exerted, a...
There are some obvious reasons why organizations should have a strong total rewards strategy. The following are some you should consider: 1. Attracting top talent– A total rewards strategy that can potentially satisfy all the employee needs will appeal to a broad demographic of prospective employees. This helps an organization attract a diverse can...
1. Assess what you already have in place
When creating your total rewards strategy, you’re likely not starting from scratch. You can conduct a rewards audit to find out where you currently stand. What is your current compensation package like? What’s your compensation philosophy? How are you doing with the other components of total rewards? You may find that some components are stronger than others. This evaluation will give you an idea of what you should prioritize and focus on.
2. Gather employee feedback
What do your employees think about your current rewards, and what are they missing? You can do a survey or organize an employee focus groupto find out. Also, you can gather stay- and exit interview data related to rewards.
3. Include the leadership
Share the results of the audit and employee feedback with the organization leadership. Explain the potential challenges of not having a strong total rewards strategy, such as not being able to attract and retain talent. You will need their buy-in and insight into organizational strategy and company goals, but also gain their approval of your rewards budget.
Building a total rewards strategy is complex but worth the investment. In the first place, you need to consider what motivates all human beings as described by Maslow’s hierarchy of needs as the psyche of your employees. The components of the total rewards program and how your strategy is built correspond to these needs. Organizations have the oppo...
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Keep reading for some key strategies for creating a total rewards program that meets the increasingly diverse needs of your workforce while aligning with your company values and driving long-term employee satisfaction.
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