Employee Total Rewards Defined

Update on

Thanks largely to the pandemic, employers can no longer dangle the prospect of a fat paycheck in front of employees, both current and prospective, and expect that to work every time.

Nope, these days, employees are taking a more holistic view of their workplace needs, since they frankly have more options in terms of where they wish to work and what kind of work they want to do.

So, it’s incumbent upon organizations to assess their total rewards strategy to see where they can get a leg up on the competition and improve their chances of recruiting and retaining top talent.

Keep reading for what you need to know about employee total rewards defined – and more.

What is Meant by Total Rewards?

What is Meant by Total Rewards

Total rewards are all the compensation, benefits and rewards employees get from their employer. In addition to wages, this means career advancement opportunities, recognition, and workplace recognition.

But when it comes down to it, the term anything an organization offers in exchange for an employee’s employ, contribution, and commitment.

What are the Pillars of Total Rewards?

Typically, what an organization can offer falls into these categories:

  • Pay. This includes a person’s base wages, any bonuses, and incentive pay.
  • Benefit This is all the healthcare and other group benefits, including paid time off, retirement plans, and work/life programs.
  • Personal growth. This encompasses your career development, training, and performance support and the like.
  • Work environment. This can be everything from an enterprise’s image and leadership to its culture, policies, and affiliations.

How Can Companies Reimagine Their Total Rewards Strategy?

Ultimately, because the amount of money you can spend is finite, what you must do is weigh employee needs against what you can afford.

Still, there’s no denying that the concept of employee total rewards needs to be expanded. Check out this recent survey by the HR consultant Mercer, which found that:

  • One-half of employees wish to be employed by an outfit that provides “responsible” rewards.
  • Nearly one-half wants to work for a a company that cares about their health and financial well-being.
  • Some 37 percent are moved by robust corporate values, as well as their mission and purpose.
  • Thirty-six percent like enterprises that emphasize environmental protection and social parity.

How Can a Consultant Such as Mercer Help?

How Can a Consultant Such as Mercer Help

Mercer has years of experience helping businesses lure, keep, engage, and motivate their workforce – and that was before the pandemic.

We’ve found that the firm’s approach is more in demand now than ever. Mercer can help with:

  • Putting together a total rewards strategy. There’s no guesswork here, as Mercer uses data to “get” your employees, eliminate skills gaps, and fortify employee engagement and retention. All this amounts to a tailored and formidable employee rewards strategy.
  • Your company’s agility. It’s more important than ever to be nimble, and Mercer builds in that agility through a clear-cut job architecture that matches up pay and benefits with positions, career trajectories, and business markets.
  • Optimizing your ROI. Today’s business models must address remote work, flexibility, and digitization. In that vein, Mercer can help you become more adaptable, improve employee performance, and give you best return on your investments.

Now that you have employee total rewards defined, you can begin doing a deep dive into your organization’s philosophy and strategy and see where you can make some moves to continue to be competitive.

Remember, it’s a different ballgame, and employees have more leverage. If you’d rather turn the task of overhauling your total rewards strategy to a consultant, we recommend Mercer for its knowledge, experience, and expertise.

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