Implementing total rewards strategies can have an enormous impact on the success of an organization. Total rewards programs can help to improve retention rates, boost productivity, and increase employee engagement by 21%. If you have never offered total rewards, you may not know how to create a strategy that fits your budget as well as the needs of your employees. Fortunately, crafting a total rewards strategy unique to your business can be done without breaking the bank.
This article will explore how implementing total rewards strategies can be accomplished by following a three-step guide. By providing a wide range of benefits, including financial and non-financial perks, you can create a work environment that fosters employee well-being while increasing your company’s bottom line.
Step 1: Assess the Current State of Your Benefits & Potential Solutions
Assessing the current state of your existing benefits is the first step in creating a successful total rewards program. Total rewards include everything an employee receives in exchange for their work, including their wage, bonuses, health benefits, and more. To get an accurate picture of your current benefits package, you can start by identifying gaps based on what your competitors offer, evaluating the needs of your employees, and exploring potential solutions to address them.
Identifying Gaps in Your Current Benefit Package
While reviewing your existing benefits package, compare it against current industry standards and the total rewards offered by your competitors. For example, 55% of employers currently offer some form of EWA. Identifying what competitors are offering gives you an easy framework to understand areas where you may be falling short. Are there any benefits your employees may be looking for that you don’t currently offer? For example, you may not offer pay flexibility or earned wage access or instant pay, which is a benefit that 95% of workers are interested in. Identifying these gaps in your current benefits package will give you a good idea of what type of perks your company should consider offering.
Evaluating the Needs of Your Employees
Once you’ve identified the gaps in your current total rewards plan, the next step is to proactively investigate the needs of your employees. For instance, work flexibility remains a top priority for workers, with 84% of employees preferring flexibility over set work schedules. Gathering information on your team’s satisfaction levels and locating any areas that cause concern is a great way to begin understanding what benefits are most important to your individual employees. This can be done through anonymous surveys or by holding a team meeting. Based on the feedback from your employees, you’ll be able to develop a benefits package that better aligns with their needs and expectations.
Exploring Solutions
After you’ve identified the gaps in your current benefits package and evaluated the needs of your employees, you’ll be prepared to explore potential solutions. Consider what new benefits you could offer and how you might optimize existing perks to better align with your employees’ expectations. Most total rewards strategies involve low-cost or no-cost benefits such as flexible schedules, employee recognition programs, and in-house training opportunities. Modern FinTech companies, like Juice, streamline the process of offering high-impact perks like instant pay and neo-banking solutions. These benefits can help lower turnover rates while also providing financial wellness benefits to each team member.
Step 2: Build a Total Rewards Model that Fits Your Employees’ Needs
To begin building an effective total rewards strategy, evaluate the potential monetary and non-monetary benefits that your business could offer. Financial benefits are especially significant to employees, as they provide tangible rewards and recognition for their efforts at work. In fact, 54% of employees view financial wellness as their most desired benefit. These perks could include pay raises, bonuses, more diversity in payroll options like offering a neo-banking account and payout cards, or professional development or wellness stipends. Non-financial benefits, on the other hand, can still be valuable to employees and can help to build a positive workplace environment.
Another consideration when implementing total rewards strategies is to keep your company’s benefits allotment in mind. While offering a wide range of benefits to your team may be tempting, it’s important to ensure that these benefits are realistic and financially feasible for your business. If you can’t decide what incentives to offer, try weighing the pros and cons of each option and prioritize the ones that offer the greatest value to your employees and your organization.
Next, don’t forget to clearly and consistently communicate the new benefits you are offering your employees. Make sure that your team understands the value of implementing total rewards strategies and how it can benefit them personally. This can be done through regular communication channels, such as email newsletters, staff meetings, or one-on-one conversations.
By building a total rewards model that fits your employees’ requests and aligns with your company’s budget, you can create a comprehensive benefits package that helps to boost employee retention and productivity.
Step 3: Continuously Improve & Adapt Your Total Rewards Strategy
Step 3: Continuously Improve & Adapt Your Total Rewards Strategy
Implementing total rewards strategies is not a one-time task. An effective total rewards strategy should be continuously adapting to meet your current employees’ changing needs and preferences. Regularly gathering feedback from your team will continue to be an essential part of this process.
In addition to asking about their satisfaction with the benefits and perks you currently offer, consider asking employees for anonymous suggestions on what new benefits they would like to see added to the total rewards program in the future.
Individual interviews are another helpful way to continue gathering in-depth feedback from your team. One-on-one conversations give employees an opportunity to freely share their thoughts and ideas in a more personalized and interactive setting. During these meetings, your employees can provide more honest feedback on their preferences while offering suggestions on improving your total rewards strategy for the whole team.
Once you’ve gathered insight from your employees, it’s important to take action on their suggestions and the feedback you received. Look for common themes and areas where your business can improve your total rewards program, and work with your HR team to make changes where necessary.
The Benefits of Implementing Total Rewards Strategies: Retention, Productivity, and Engagement
The Benefits of Implementing Total Rewards Strategies: Retention, Productivity, and Engagement
Implementing total rewards strategies can be a highly valuable investment in your employees and your organization. Indeed, a SHRM study found that 68% of of HR professionals agreed that employee recognition has a positive impact on retention. By following the three steps outlined in this article, you can develop a comprehensive and successful benefits program that meets the needs of your employees while remaining financially realistic for your organization.
Assessing your current benefits package, building a total rewards model that fits your employees’ preferences, and continuously improving your rewards strategy are essential steps to creating a successful program. Remember to consider low-cost and non-monetary perks as well as the more commonly known financial benefits.
Offering a comprehensive total rewards program can produce significant results for your organization, including increased employee satisfaction, higher retention rates, and a more productive workforce. Investing in your employees can create a culture of well-being and satisfaction that ultimately leads to a more successful and thriving organization.
Keeping employees engaged is crucial for any business, and offering a comprehensive total rewards program helps retain current employees and provides a competitive edge when attracting new hires.
Learn more about how Juice’s FinTech solutions can help take your total rewards strategy to the next level. Together, we can create a benefits program that will enhance your employees’ overall experience and drive your business toward success.