The Total Rewards Package is an employer strategy that includes all incentives (monetary and non-monetary) to motivate and retain employees. Hiring managers and executives offer competitive salaries reflective of their industry and business climate to keep qualified employees on board. However, successful organizations must also understand how to implement a total rewards package to recruit new, and inspire existing, talent.
A strong total rewards package allows businesses to express their commitment to employees’ personal and professional wellbeing. Individuals that feel supported and appreciated by their employers, often provide loyalty in return.
Here are five suggested elements to consider when putting together a Total Rewards Package for employees:
Compensation – There is a spectrum of pay systems that improve employee retention rates. In addition to the base salary, employers can offer variable salary adjustments including annual, semi-annual and quarterly bonuses based on individual and company performance.
Recognition – One way to ensure employees’ loyalty to a company is through recognition. The cornerstone of any organization’s success is the effort of its teams. Some examples include service awards, employee of the month awards and appreciation luncheons.
Work / Life Balance – Employees creating a manageable balance between work and other personal responsibilities is crucial to company productivity. Try to be as open as possible to accommodate their needs, such as paid holidays, work-from-home options and cultural diversity initiatives.
Personal & Professional Development – Today, employees value career growth more than ever. In fact, they have cited the lack of it as as one of the main reasons for leaving a job. As employers, you can provide L&D resources including leadership training courses, formal performance reviews with action assignments, online webinars and tuition reimbursement to advance the transferrable skills of your employees.
Benefits – Without doubt, health insurance is what comes to mind when employee benefits are mentioned. This includes medical and often times vision, dental and disability care. Additional benefits may include offering services such as life insurance, income protection and financial planning/retirement tools, allowing employees to feel protected with their financial future for themselves and their families.