5 employer rewards priorities you must know
April 30, 2014 2:23 PM
Overview:
Employers around the world struggle to find the right people for technical and skilled jobs, making employee retention and engagement strategies such as competitive, total reward benefit plans critical. A new survey of more than 200 employers and 22 countries from Deloitte, the International Society of Certified Employee Benefit Specialists and the International Foundation of Employee Benefit Plans identifies the top five employer rewards priorities that advisers should be helping their clients address with their overall benefits strategy.
[Images: Fotolia]
[Images: Fotolia]
1. Aligning total rewards with business strategy by attracting, motivating and retaining employees.
With global economies continuing their slow rebound amid persistent skills gaps issues, it comes as no surprise among over a third (35%) of those surveyed that attracting, motivating and retaining talent is the primary concern of employers around the world, says Jason Flynn, a principal at the global consulting firm Deloitte, which is headquartered in New York, and co-author of the Global Top Five Total Rewards Priorities Survey.
2. Reducing the costs of providing health care and other non-cash benefits to employees.
As a means to reduce overall spend on health care costs, the popularity of wellness programs is booming. Forty-three percent of employers surveyed identified an increase in health and well-being initiatives as an action their organization has undertaken within their overall total rewards strategy.
3. Motivating staff when pay increases are flat or non-existent.
Compensation continues to fall under the spotlight as the most visible and immediately tangible of rewards programs, but employers are starting to redesign compensation packages to include variable pay structures, employee stock purchase plans, equity, sales commission plans and non-qualified deferred compensation plans, all of which could affect employee benefit eligibility and purchasing options.
4. Demonstrating appropriate return on investment for reward expenditures.
With the focus on attracting and retaining qualified talent, advisers can help employers regularly assess their programs to determine whether they are hitting the value target of employees. This value must then be balanced against the rewards costs, all within the context of the populations changing needs and broader organizational strategy, the report says.
5. Creating a rewards program that reflects the culture and goals of the organization.
The communication and delivery of a total rewards program increasingly determines the success of how it will be perceived and measured. Advisers can work with employers to align the program administration both with the capabilities of the organization and the goals of the rewards strategy.
