Employee Benefits And Employee Rewards News: The changing landscape of Total Rewards As organizations begin the journey toward a
As organizations begin the journey toward a fully integrated total rewards program, one of the challenges they face is understanding the best way to attract and retain a workforce that has varying priorities. The future impact of this disruptive workforce landscape is yet to be fully realized. What we do know and understand is that organizations that demonstrate agility and creativity to address varying employee needs will yield the greatest success, and perhaps win the coveted title of “Employer of Choice”—and create simply irresistible employee experiences.
A recent Deloitte study – the Total Rewards Survey revealed that only 1 in 5 organizations currently has a fully integrated rewards program. Of the remaining organizations, three out of four are interested in increasing the integration of their compensation and benefits programs. Examples include benchmarking the programs on a combined basis and communicating to employees the full value of all company-provided rewards.
Did you know:
- Only 13 percent of large organizations seek to be above the market for total compensation and benefits compared to 42 percent of small organizations.
- Around 28 percent of organizations believe their philosophy may differ from their actual practices; around 7 percent are above where they wish to be and 21 percent are below their desired position.
Not surprisingly, as organizations focus on total rewards, costs continue to be the number one influencer of an organization’s total rewards strategy. Other factors that influence the total rewards strategy included:
- The value to critical workforce segments
- Administrative complexity
- Multi-generational needs
Flexible rewards, or the ability to create employee customization, was least important to those surveyed.
Dealing with shifting workforce demographics, activating a digital organization, keeping up with the rapid pace of change—the forces disrupting work are also forcing the need to evolve traditional compensation and benefit strategies, programs, and associated service delivery models.
To compete effectively, organizations will need to adopt a more holistic and integrated view of total rewards—one that embraces and leverages the current and pending disruption. This transformation is necessary to allow employers to develop a more agile approach to rewards strategy, programs, delivery, and communication to meet the needs of tomorrow’s workforce. Few organizations are there right now, but many recognize the need for change.
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