The modern working world is competitive. Recent Gallup research suggests that half of workers in the United States are actively looking for new jobs. Not only does that mean there are a lot of unsatisfied workers out there, but a lot of work places without great reputations.
Do you know the details of your company’s reputation? Because the statistics suggest it might not be as strong as you might hope. Gallup research also says that only 27% of workers strongly agree they would recommend their employer.
Caption: Only 1 in 4 U.S. employees are likely to recommend their employer. Via Gallup.
Regardless, for employers, one effective way to stand out and attract talent – and retain it! – is to offer a total rewards package. What that means is providing workers with something beyond wages. Instead, employers can take a holistic strategy that provides their team members with things such as health and wellness benefits, professional development, and more.
This leads to a happier worker, and that leads to a better product for your business. Companies that invest in employee development are 40% more likely to retain their employees than those who don’t.
Let’s break it all down.
Components of a Total Rewards Package
There are five key components of employee total rewards programs. This range of offerings helps cater to the diverse needs and preferences of employees. The categories are as follows:
- Compensation: Not just base wages, but also overtime pay, bonuses, and other financial incentives.
- Health and Wellness: Prioritize healthy habits among workers by offering gym membership stipends, mindfulness apps, healthy behavior incentives, and more.
- Professional Development and Training: Provide opportunities to grow and offer training, tuition assistance, and other programs.
- Recognition and Rewards: Understand that people respond to positivity, so utilize performance-based bonuses, extra vacation days, or other incentive-based options.
- Work-Life Balance Benefits: Offer flexible scheduling, paid time off, or other empowering programs such as Earned Wage Access.
The Direct Benefits of a Total Rewards Package Strategy
As we’ve stressed, when you take care of your employees, you see results. A total rewards strategy offers a way to show your appreciation through action – something that will not go unrecognized by employees.
Attracting Top Talent
A well-designed total rewards package is a company’s best advertisement. It communicates to potential hires that the company values its workforce and is invested in their success. For some workers, benefits are hard to come by with employers, so when a company offers comprehensive benefits, work-life balance, and opportunities for growth, they seem quite appealing.
Retention and Reducing Turnover Rates
High turnover can be costly and disruptive. A robust total rewards package addresses the root causes of employee turnover by meeting workers’ financial, health, and career development needs.
Employee Satisfaction Fosters Productivity
When you invest in people, they invest in you. Plus, the empowerment and financial security provided by Juice’s innovative financial solutions, for instance, offers a form of reassurance that can lead to increased job satisfaction and loyalty.
Employee Engagement and Morale
A positive workplace culture is good for work and good for business. Total rewards packages that are thoughtfully constructed and communicated reinforce employees’ emotional and psychological investment in their work and the company.
Thinking Beyond Direct Benefits: Become an “Employer of Choice”
Let’s go wider for a second. People identify with work on many different levels. For some, it’s just a job. For others, it’s how they define themselves. In order to get the true benefits of a total rewards package, it’s important to think a bit deeper about what you’re offering to your team members.
Understanding this is not only good for your workers, but it’s good for business. Keep in mind that 82% of surveyed employees say that feeling happy and engaged at work is the key driver of productivity.
So with that, ask yourself seriously: Why, exactly, are you offering what you’re offering? What does it do for the greater good of your business? With the right type of rewards, you’ll potentially find deeper answers that can unlock a new level of your organization.
How Total Rewards Influence Perception and Choice
There’s an old saying that perception is reality. A total rewards package can provide workers with a greater perspective and understanding of their day-to-day life. For instance, if your job includes a gym membership, that encourages you to take better care of yourself physically and mentally. The psychological impact is significant and helps fulfill various levels of Maslow’s hierarchy of needs – from basic financial security to belonging and esteem. Naturally, this leads to employee loyalty, as well.
The Role of Total Rewards in Employer Branding
Happy and satisfied workers are not only better at their jobs, but help showcase a distinctive aspect of your company’s brand, one that demonstrates a commitment to employee well-being and modernity. Plus, you only get one reputation. How a company rewards its employees is often known among industries. Simple benefits such as pay solutions can be a gamechanger for a reputation and public image.
Steps to Evaluate and Revamp Current Total Rewards Offerings
Now that you know the benefits, audit your current offerings – and continue to do so. To achieve and maintain a status of an employer of choice, companies must regularly assess and adjust their total rewards strategies. Steps to do so might include:
- Surveying employees to gauge satisfaction with current benefits and identify gaps or areas for improvement.
- Analyzing market trends to ensure the rewards package remains competitive.
- Partnering with companies such as Juice to integrate modern FinTech financial solutions into the rewards program.
- Instituting a feedback loop where employees can continuously communicate their needs and preferences.
Implementing these steps demonstrates a company’s commitment to their workforce’s evolving needs, ensuring you can remain an employer of choice in the eyes of current and prospective employees.
With the Right Total Rewards Package, Make Your Company Stand Out
Smart companies are thinking about the future as much as they’re thinking about the present. By working to transform your company into an employer of choice, you’ll present your business as an attractive place to work for top talent. Plus, you’ll ensure your employees live fuller lives – increasing happiness and productivity. Want to start improving? Learn how Juice can help transform your company’s reputation.
