You’ve managed to get them in the door…
Now how do you keep them?
Total Rewards is a broad term that encompasses all the ways you can recognize, reward and incentivize your employees.
The goal of having a Total Rewards program is to attract and retain employees and create a highly engaged and productive workforce.
In today’s competitive job market, employees are looking for more than just a paycheck.
They want to be paid well, but they also want great benefits, flexibility and to feel appreciated for the work they do.
According to a recent report from Gallup, based on data from thousands of employees across the U.S. and Western Europe, when employee recognition hits the mark, employees are:
More satisfied
More productive
More engaged
More connected
And, they are less likely to leave. In fact, they are 5 times as likely to see a path to grow in the company and less than half as likely to be looking or passively watching for another job.
That same report showed that many organizations are missing the mark when it comes to recognition by not investing in or prioritizing it. Nearly two out of three leaders say their organization does not have a budget for recognition. From the employee perspective, only 23% of employees strongly agree they get the right amount of recognition for the work they do.
Employers must intentionally create an effective “EVP” – Employee Value Proposition.
A comprehensive Total Rewards program includes such things as:
Compensation
Benefits
Recognition programs
Rewards
Well-being
Career development
Here is a brief overview of the Recognition and Rewards component of Total Rewards:
Recognition is any tool or program that celebrates employee accomplishments, whether they are individual or team accomplishments.
The tool or program doesn’t have to cost a lot… in fact, some of the best options are free, such as a thank you and/or praise at a team meeting or on an all-company Zoom. A 2021 Harvard Business School and King’s College London study showed that receiving a handwritten letter, mailed to their home address, resulted in employees feeling significantly more valued, recognized for their work, and supported by their organization than similarly situated employees who did not receive a letter. There were also positive impacts on their subjective wellbeing, belonging, and intrinsic motivation and it resulted in reduced absence rates. The letters were only two sentences long, but personalized, handwritten and signed by their managers.
At the same time, the Gallup study we referenced earlier showed that recognition with monetary rewards are 20% more effective than e-thanks alone when looking at reducing turnover.
Rewards programs are somewhat different. They are typically a gift or opportunity that is given to recognize and reward employees. Some examples include cash bonuses, stock options, gift cards, travel awards, and company swag. Rewards could also be extra paid time off, the chance to participate in a valued project or development program, or a donation to an employee’s favorite charity.
There’s a lot to consider when implementing and evaluating Total Rewards:
- Define your culture and goals for the program
- Understand your employee demographics
- Align total rewards with business goals and objectives
- Consider budget implications
- What funds are available for the program?
- What are options that can be low cost or free?
- What would you do if your budget was unlimited?
- Ensure fairness and equity
We can help you develop and incorporate Total Reward programs to acknowledge, appreciate, reward, and support your greatest asset – your employees.
Unsure where to start? Contact us.
A Workshop for Greater Boston Area CEOs
Preparing for 2024:
Strategic Insights from Trusted Advisors
Tuesday, September 12, 2023, 3:00 pm
90-minute workshop + 1-hour networking reception
The Conference Center at Waltham Woods
| Featuring Strategic Leaders Across Your Business Operations FREE only for my network—and only 1 week left to sign up. Deadline: August 29; limited to the first 60 registrants. Read more bostonstrategicinsights.com |
90 minutes packed with insights from strategic leaders across the key operations of your organization, followed by a networking reception.
If you are a CEO, owner, or founder in greater Boston use promotional code 2024partners to attend for free.
Your friends are my friends: feel free to share this with the business leaders you know in greater Boston and extend the same offer!
You’ll leave ready to implement the concepts in your 2024 planning.
Hear from Top Trusted Advisors:
Getting Traction with Kristan Bishop, EOS Worldwide
Optimizing Operations with Jeff Provost, Key Performance Integrators
The 12 Financial Building Blocks with Brad Kayton, CFO Centre
The Marketing Growth Gears with Dina Wolfman Baker, Chief Outsiders
The Foundations for Sales Execution with Raffi Yardemian, Boston Sales Solutions & Sales Xceleration
Transforming Your Business through Your People with Carolyn Ross, JD, Ross Insight Solutions
Plus: Continual Process Improvement through Information Technology
Join us on Tuesday, September 12, at The Conference Center at Waltham Woods.
Limited to the first 60 registrants.
Registration closes August 29.
Promotional code: 2024partners
