Historically employee compensation structure in companies was highly rigid and based on one-size-fits-all approach. However, significant changes over the last 50 years in the job market, employee demographics and most importantly in their expectations, forced companies to review their reward strategies. In the 90’s, as more and more companies struggled to attract and retain talent, the concept of Total Reward was introduced to challenge the one-size-fits-all approach to reward and compensation. Companies finally looked beyond the standard forms of compensation as a way to engage and motivate employees.
In periods where pay stagnates, or even falls against cost of living, the fight to acquire and retain talent becomes more crucial. In tough times, more personalized experiences, and a Total Reward strategy, can become a key differentiator.
To get the most value from their strategy, companies must ensure employees are aware of the value of their employment package. And employees have become increasingly sophisticated in their understanding and use of technology, coloured by social media, smart shopping sites, and personalised recommendations.
The Total Reward strategy has to grow too. Total Reward is not dead: it’s evolving.
Total Reward approaches can radically differ from company to company according to their values, size or workforce demographics. Some companies focus on tangible elements such as salary, bonuses and shares. Some prioritise personal development, learning and training while others promote less tangible elements such as work-life balance, environmental and social engagement.
Although some experts believe Total Reward is losing its appeal, at Thomsons we believe that it is more important than ever to provide a true Total Reward strategy. A Total Reward strategy just needs to evolve alongside the needs of employers – continuing to provide cost control and smoother administration – but in light of the increased employee expectation of a tailored and personalised experience.
This means it is now more vital than ever for companies to have a strong, clear and engaging way to communicate with their employees about benefits, as well as for employees to have the control, freedom and flexibility they have come to expect of their benefits.
Employees must be at the centre of the design development and engaged in the process of defining how their total reward package could look and how they can interact with it. Organisations need to cater for 2 or 3 or more generations of employees that are, for the first time, coexisting in the workplace. All with different preferences when it comes to communications and benefits.
This is the next stage of Total Reward - personalization.
After realizing that, our Product Design team set out to solve the challenges of:
1. Creating a bespoke experience for each employee that they can relate to.
2. Raising employees’ awareness of the emotional and monetary value of their reward package.
3. Establishing a one-stop-shop environment, where all the reward package information is instantly accessible to employees.
4. Providing flexibility for companies to use different reward strategies and models according to their diverse needs and goals.
In 2015 we will be launching a revamped Total Reward Centre, which will revolutionize how companies view Total Reward and use personalization to engage their workforce around the globe. Stay tuned for the update!
Want to learn more? Contact Us.