3 Tips to Implement a Total Rewards Approach

Hiring and retaining frontline workers remains a challenge in today’s workforce climate. As many industries are experiencing a highly competitive job market with a limited pool of qualified candidates, companies must dig deeper to attract and retain workers.

A key strategy for achieving this is implementing a total rewards approach – a comprehensive compensation and benefits package beyond just a paycheck. A total rewards program offers a strategic advantage, with 80% of employees noting a preference for benefits over pay.

To help you get started, we’ve put together three essential tips. They help employers implement an effective total rewards approach to attracting, hiring, and retaining standout employees. Discover what resonates with your workforce below, along with suggestions for a more satisfying and productive work environment.

Tip 1: Assess Your Current Benefits and Identify Opportunities

Before you can ramp up extra perks and benefits, it’s critical to understand what your company currently offers. It may be surprising to discover that benefits are underutilized due to a lack of communication. In fact, for mental wellness benefits, only 20% of employees are fully aware of their available health insurance benefits.

Benchmark Current Practices

Start implementing a total rewards program by benchmarking your benefits against industry standards and competitors’ offerings. Use industry reports, surveys, and publications to gain insights into the specific benefits offered in your sector.

Use your competitor’s publicly available information, such as job postings or career websites, to understand what they offer their workers. Compare this information to assess the similarities and differences between your benefits programs and what’s available.

Use Employee Insights

Who better to provide feedback on your current benefits program than your own employees? Focus groups and large surveys can be a valuable tool for gaining an understanding of how your workers perceive your benefits.

Organize a focus group representing different demographics, roles, and levels within your organization. Then, facilitate group discussions or provide an optional survey where participants are encouraged to share their opinions and suggestions.

Analyze Data and Make Changes

To keep your turnover low, it’s critical to hear the voices of your workforce. Armed with industry benchmarks and insider information, you can analyze the data you have collected. Identify patterns, common themes, and critical takeaways received during this research.

Based on your analysis, you can make strategic adjustments that resonate with your employees. You may be surprised by what they really want versus what’s currently offered. For example, post-pandemic, over half of Millennials and nearly all Gen Z workers (81%) have left their jobs due to a lack of mental health support. Offering a mental health stipend could help your workers decide to stay with your organization.

Tip 2: Identify Key Benefits to Offer

A total rewards approach is only effective if it offers benefits relevant to your employees’ needs. Identifying the key benefits that resonate with your workforce will help you create a package that attracts new workers and keeps your current workforce engaged.

To set your total reward program apart, consider benefits that align with the evolving needs of the modern workforce. It’s essential to consider both monetary rewards and non-monetary perks that contribute to employee satisfaction.

While competitive compensation is helpful, other employee perks can make a significant impact. A work environment that communicates care for their workforce is more productive, engaged, and retains its employees.

One of the most significant employee benefits offered today has no monetary value attached to it. Forbes notes that a recent survey found that 80% of employees are loyal to employers offering scheduling flexibility. Other benefits that aren’t direct payouts include:

  • Career & Development: Provide avenues for personal and professional growth such as training programs, mentorship opportunities, or tuition reimbursement. This shows that you invest in your employee’s long-term success.
  • Financial Wellness: Give your workforce access to financial planning resources, earned wage access, or employee assistance programs. These directly translate to reduced financial stress – and less turnover.
  • Performance Recognition: Rewarding top-performing employees is a vital component of total rewards. Not only do rewards motivate employees to work harder, but they also create a positive work culture where that effort is rewarded.

By staying attuned to benefit trends and addressing employee needs, you create a competitive advantage. If you’re ready to attract new workers and keep the ones you have, tailor your benefits program to include both monetary and non-monetary perks.

Tip 3: Communicate and Educate Employees on Total Rewards

Once you’ve developed a tailored total reward approach, make sure the information is transparently communicated. Educate your workforce on the total rewards available to them and how they can use them.

Clear communication empowers employees to maximize the value they get from a total rewards program, and helps your bottom line. A transparent and well-communicated package is a powerful tool for attraction and retention efforts.

“Top talent may soon be looking elsewhere for opportunities if they do not feel like they are being adequately rewarded.”

Christina Lee, SHRM’s Researcher for Total Rewards Strategies

Here are some strategies to effectively communicate your perks:

  • Comprehensive Documentation: Ensure information is easily accessible and regularly updated in your employee handbook, benefits guide, or on a dedication section of the company’s intranet.
  • Employee Benefits Statements: Highlight the value of each perk and how it contributes to the compensation package with individualized statements.
  • Create an Online Portal: Include FAQs, videos, or interactive tools that help employees navigate and understand their benefits through an online portal.

Ensure an ongoing opportunity for employees to understand their benefit options with open communication. Consider organizing online training options where employees learn about a specific benefit and how to access it.

You can also offer benefit consultations where employees can have one-on-one sessions with HR representatives or specialists. They can provide detailed explanations of the total rewards that are relevant to each employee.

Don’t Wait to Implement a Total Rewards Approach

Taking a total rewards approach is essential for attracting, hiring, and retaining workers in today’s competitive job market. By following these three tips, employers can create a rewards approach that helps bring employee satisfaction.

Continuous evaluation and improvement of your perk program is vital to ensure its ongoing relevance and effectiveness. Listen to your focus groups, stay abreast of industry trends, and create a compelling value proposition to attract workers and foster long-term engagement!

To enhance your total rewards program and ensure zero-cost benefits, consider partnering with Juice Financial. Our leading financial technology company is committed to providing customized digital solutions beyond payouts, including wellness expenses and rewards.

Learn more about Juice’s innovative FinTech solutions that help you increase your competitive edge today!