Tailoring total rewards doesn't have to be a tongue-twister

Total rewards aren’t new. However, as the world of work evolves, so must employers. Why is optimizing rewards and benefits critical to attracting and retaining the best talent?

The Global Workforce Hopes and Fears Survey from PWC showed us that the ‘great resignation’ had no signs of slowing down.?

Coupling this data with the newfound prevalence of remote and hybrid working is a lesson to business and HR leaders that more traditional methods of reward and recognition are no longer fit for purpose.?

But, amidst the aftermath of a pandemic, continually raising inflation rates, and war, how can businesses optimize cost whilst giving employees what they want??

Unlocking the total benefits equation

Many of the trailblazing efforts for innovative total rewards in recent years come as a combatant to declining employee wellbeing from a conundrum of economic and social forces.

For example, Morrisons, a national supermarket chain in the UK, showed appreciation for its employees during the COVID-19 crisis by increasing their bonuses. The food giant announced it would pay employees a six percent bonus on all earnings for the following twelve months.

Such reactive approaches may bring advantages but they don't solve for longitudinal challenges. Take a look at PWCs study on rethinking employee rewards. Over 11 years, the progression of the data reflects the declining importance of compensation relative to other health, wellbeing, and learning focussed benefits.

Furthermore, Benify’s ‘Future of Work’ report, gathering data from 58,000 employees across Europe, reveals the importance of listening and understanding ‘what do my employees want?’?

Answering this question could be the key to unlocking the total benefits equation.

OneStudyTeam: Creating a global total rewards offering

As a US-based employer, in late 2021 OneStudyTeam began to build out its global workforce. Using a PEO model, the team rapidly expanded to circa 40 professionals in over 15 countries.

Building a bespoke ‘benefits buffet’ for every individual employee would be a tough ask and not an easy starting point. So, creating a globally consistent experience whilst understanding the need for local flexibility was the key challenge for OneStudyTeam.

To meet this challenge, the best place to start was not to look at what others are doing but to evaluate the current state of play whilst asking what our people value most.

By applying this approach, we have built out a program from an employee-centric perspective rather than competitive-focussed practice.?

Answering the question: ‘what do my employees want?’

Professional organizations such as The Academy to Innovate HR, CIPD, and Society for Human Resource Management all project the same message: listen to employee attitudes and feedback.?

With an 85% response rate to its global survey, OneStudyTeam realized an important truth from this approach.

The employee NPS score of our current benefits offering sat at -62!

Whilst we see the relative interest in compensation declining over the last decade, financial wellness is still an important issue for employees. OneStudyTeam saw bonuses, stock options, and pension contributions to be favorable across most geographies.?

However, the data shared from our global population also maintains the importance of a tailored total rewards approach. Using a ‘points-based method’ we saw nearly 40% of all allocation across Brazil and Canada going to a robust healthcare plan. Compare this to APAC, and the focus changes to enhanced leave policies and entitlements.

We have listened to our people. We understand the need for diversification. How do we get leadership buy-in to invest in a re-mastered total rewards portfolio??

Debunking the cost conundrum

Whist reducing operational costs is a common trend, it becomes clear that the future financial impact will be more detrimental than investing in upfront enhancements.?

“More than 50% of your people are open to leaving for a new employer.”

This statement, supported by WTW’s 2022 Global Benefits Attitudes Survey, is a wake-up call to business leaders on the risk of attrition.?

Focussing in on this prevalent topic, we asked “How long are you likely to stay at OneStudyTeam if changes aren't made to your current benefits offering.” The answer? Around 30% of OneStudyTeams global cohort would leave within the next 12-18 months.?

Let us look at the arguments on how OneStudyTeam attained leadership buy-in for implementing new benefits:

1. Attracting talent: It’s a no-brainer, right? But, if not, look at some data! LinkedIn’s Talent Drivers survey shows us that candidates consider compensation and benefits their top priority when thinking about a new job. So, if we don’t have the benefits to offer, how do we plan to attract the caliber of talent we want??
2. Impact of attrition: It could cost OneStudyTeam up to $300k to replace the 10 team members we will lose this coming year if benefits aren’t prioritized.?
3. The return zone curve: Considering the complexity of the service and knowledge needed for customer relationships at OneStudyTeam, it could take an additional 6 months for each of those replacement hires to be onboarded and performing at a value add level.
4. Budget availability: Where do we find the funds to invest in new benefits? If the above reasons don’t cut the custard, repurposing another cost saving could be the way forward. With a little negotiating, we can show how a cost saving from one area can be appropriately reinvested in another. The answer - better benefits with limited financial impact!

Leadership included? Check. Alignment with strategy? Check. It's time to communicate to your employees!

Hone in on HR tech

Only 31% of companies measure employee experience, but 81% analyze customer experience.

How can organizations roll out the red carpet to build a culture-curated team of brand ambassadors?

Heka provides a virtual platform for employees to use a business-provided allowance to select and engage with over 3000 wellbeing experiences.?

Unique concepts such as that from uflexreward offer a real-time system where employees have access to a personalized ‘Total Reward Statement.’

Building out a global team? You can also consider localized solutions with individual advantages. In The Netherlands, yourcampus offers a smart compensation feature, helping employees get the most out of their investments and budgets.?

It seems the answer is at our fingertips with plenty of tools to help create the real VIP experience when it comes to benefits!

In summary

Whether it be 'Work from anywhere' workplace arrangements to comprehensive health coverage, companies are realizing that investing in total rewards is the key to attracting and retaining top talent.?

So, whether you're an employer looking to stay competitive in a global market or an employee looking to get the most out of your career, it pays to pay attention to the world of total rewards and benefits.