A comprehensive total rewards program is a must-have for employers in 2023. Not only will it help you attract and keep top talent, but it will also help create a strong company image and a positive work environment. With employees having more control in the hiring process and inflation on the rise, a well-rounded total rewards package can set your business apart from others.
Total rewards go beyond just salary and benefits including cell phone insurance, professional growth stipends, flexible work schedules, and other unique perks that employees appreciate. Having these elements in your total rewards program will ensure you meet your employees’ needs and stay competitive.
And the best part? A total rewards program can also save you money in the long run. Programs that offer support for mental health or employee assistance can reduce turnover and absenteeism, leading to better productivity. Flexible work arrangements can also improve work-life balance, employee engagement, job satisfaction, and reduce turnover and absenteeism.
In this article, we will explain what we mean by “total rewards” and highlight the key elements that make up a successful program. By knowing what to include, you can create a package that meets your employees’ needs and keeps you ahead of the competition in the job market.
What Are Total Rewards?
Total rewards is a term used to describe the various forms of compensation and benefits that an employer offers to its employees. It encompasses not just traditional salary and benefits, but also includes perks, recognition, and other non-traditional forms of compensation. Total rewards tend to span four main pillars:
- Monetary Rewards: Pay is an essential factor in this category, but other financial benefits such as retirement planning, healthcare coverage, tuition assistance, paid time off, and bonuses, not part of hours worked, are also included.
- Non-Financial Rewards: This is a limitless category ranging from personal recognition to fringe benefits such as restaurant vouchers or movie tickets. Non-financial rewards can also include training and development opportunities.
- Recognition & Appreciation: You help create a positive company culture when employees routinely hear and experience their value. Express gratitude with ongoing feedback, open-door policies, or buying your worker’s lunch.
- Health & Wellness Benefits: Encourage your employees to invest in physical and mental health by offering gym memberships, wellness stipends, or even helping them pay for smoking secessions classes.
Many of these perks and benefits can be easily distributed with modern Fintech solutions like those provided by Juice. Of course, no single benefits package will fit every company. Find out what matters most to your workplace by asking for feedback from your current employees.
Why Employers Must Embrace Total Rewards in 2023
There are a handful of reasons why leading employers are embracing total rewards programs more than ever. Total rewards programs help attract talent, drive employee engagement, reduce turnover, and make employers stand out from the competition.
Total Rewards Help Attract Talent in a Competitive Environment
In today’s job market, employees often have many options for work. Total rewards programs are an essential tool for employers looking to attract top talent.
By offering a comprehensive total rewards package, employers can set themselves apart from other companies in the industry, making them more attractive to top talent. Total rewards programs demonstrate to potential employees that the company values their well-being and professional growth. Employers can promote total rewards programs to show potential employees that they care about their employees’ overall well-being and are committed to helping them grow and advance in their careers.
Total Rewards Help Facilitate Employee Engagement
Recruitment is not the only issue that total rewards serve as an answer for. Another common issue faced in the 2023 job market is high turnover. When employees do not feel valued, they become disengaged and often eventually leave.
Between leaving and feeling the disparity, though, there’s another equally detrimental effect disengaged employees have on business. Adding insult to injury, disengaged employees result in a $450 to $550 billion annual loss in productivity.
Total rewards programs can facilitate employee engagement by providing employees with a comprehensive package of benefits that align with their needs and values. When employees feel that their employer values their well-being and professional growth, they are more likely to be engaged and motivated in their work.
Employers can use total rewards to facilitate employee engagement by offering a wide range of perks and stipends through modern Fintech, like those offered by Juice Financial. These benefits can be easily administered and managed, making them affordable and easy for employers to implement.
Making Rewards Personal is Key to Combat Turnover
Of course, rewarding employees helps boost productivity, but it also has other benefits. If your workforce feels valued and engaged, they are less likely to look for work elsewhere. In fact, boosting engagement has been found to help lower high-turnover companies by 25%.
Ideally, employees are intrinsically motivated to stay engaged, meaning they find value in the work they do. Intrinsic motivation can waiver based on personal needs. It makes sense then that using personalized rewards is the key to combating disengagement and, thus, high turnover.
If you are implementing a total rewards strategy, chances are you have taken the time to listen to what your employees want. While this new deal will attract new talent, you can also apply the information to current employees.
Get personal with rewarding and recognizing employees. Recognition can be as simple as verbal praise or a peer-nominated award. Use the momentum gained to reward improved behavior by offering stipends for meals, movies, or spa days as incentives to keep up the hard work.
Offering Total Rewards Boosts Advantages Over Competition
While total rewards solve many employers’ productivity and engagement issues, they may also be the most important answer prospective employees are looking for. In a recent Gallup survey of more than 13,000 employees, benefits and pay shared the top spot for most sought-after qualities during a job search.
That means potential employees look at your company’s aspects beyond their salary. They want to feel valued in a company that cares about their well-being and provides opportunities for growth in a warm company culture.
If you are seeking top talent in today’s job market, it’s critical to offer what job seekers want. Offering total rewards is about more than just a paycheck. While paying competitive salaries is important, so are the additional benefits provided by a company.
While structuring your new strategy, think about what really matters most to your employees. If wage increases aren’t feasible, consider a different kind of pay perk. Earned Wage Access (EWA) could offer a significant benefit over other companies that aren’t providing such a financial resource.
Still, you’ll need cost-effective ways to manage this new plan without being too idealistic. Modern fintech solutions can serve as an honest answer here. Keep gift cards on hand, start a “fun budget” with a digital wallet, or even seamlessly use EWA benefits.
The Take Away from Offering Total Rewards
Past events have shifted how our modern workforce operates. Talk of a labor shortage means that employers must up the ante to attract and retain available talent. What is needed is to simply offer what employees want.
Recognition and rewards go a long way to keep current employees engaged. Total rewards provide a decisive advantage over the competition regarding recruitment. Schedule a consultation to learn more about partnering with Juice for an advanced fintech solution to help facilitate your new employee rewards program.