Total Reward has enormous potential to improve business performance
through an engaged workforce, and it is being harnessed and utilised by
many UK companies
Recent research from both Thomsons and the CIPD (see links in
Resources below) show a third of all UK companies have adopted this
approach, and many think it is the future for meeting the motivational
and retention needs of their companies with very impressive ROIs.
Total reward encompasses pay and benefits, working environment and
career and personal development, giving a value to both financial and
non-financial elements of working life. In the current financial
climate, where companies are being asked to do more with less, total
reward as a business strategy is of particular relevance. Non-financial
elements such as learning, personal development and work environment
have a huge influence over company culture, and are therefore a powerful
management tool. When employees understand and appreciate the value of
their total reward package, it helps to improve retention, creates a
competitive cultural brand and counter balances pay or bonus freezes.
As the workforce demands different returns from work, it certainly helps
to be able to see the bigger picture.
So what does successful total reward look like? The first thing is
to choose which benefits appear on your total reward statements wisely,
only selecting benefits that have true value to your employees.
Communicate these in an effective way, in line with your company or
reward brand and values, and make sure that if segmented, you only
communicate rewards to which an individual is entitled to. The aim is to
be balanced, ensuring that the company’s interests are catered for as
well as inspiring more positive employee commitment. If implemented
correctly, the benefits should include easier recruitment and
better-quality of staff, reduced wastage from staff turnover, better
business performance and an enhanced reputation of your company as an
employer of choice. More tangible methods of measuring success include
before and after employee surveys and monitoring login and benefit
selection statistics.
Resources
Thomsons Online Benefits – Employee Reward Watch 2009:
http://www.thomsons.com/
http://www.thomsons.com/reward-news-knowledge/thought-leadership-and-research
CIPD
Annual Survey Report 2009 – Reward Management:
For
further information or to discuss the issues raised, please contact
Caroline O’Keeffe (Caroline.OKeeffe@thomsons.com)
on +44 (0) 203 328 4000
