Total rewards are typically the benefits, compensation and rewards. Perks, bonuses and commissions are the overall monetary package an employee receives in working for an organization. Rewards are key drivers in attracting and retaining employees. There is much more than being the highest paying company to attract or the company with the least number of perks or rewards to detract a person from accepting an offer. In the critical to map reward strategy to ensure that it aligns with the company’s structure, goals, and culture. There are also reward strategies cross and impact almost every HR function. The total rewards function in HR must ensure it is effectively measuring ROI, as healthcare and salaries are the highest spend in almost every company. ROI, cost, revenue impact, increased productivity, and performance, are the key metrics that HR should measure and all of these can be found in the rewards function.
Are the companies renewing their internal and external benchmarks and comparing those comfort ratios with their hiring practices? For example, how many people are accepting the job? How many counteroffers are you asked to review? How many counteroffers are the companies extending to keep an employee? Do the company’s try to find out where they’re leaving to? Have they looked at your internal equity between underrepresented groups? Why is this important?
This is important because the company’s can review internal and external compensation programs to determine if they need to lift and shift their pay practices. How well is the HR Manager monitoring and measuring their employee’s understanding of the packages they are being offered? The total rewards package is beyond just pay. Do employees know how much they are truly costing to the company?
Are HR Manager communicating, highlighting, and benchmarking the program, bonuses, time off, and pay? What about other perks that are given to employees?
In a world where we hear pay-for-performance, are the companies really paying for performance? Is HR Manager measuring this? When we look at commissions and bonuses, are they differentiated enough? Is the company truly paying the lion’s share of their dollars to those who bring in the most impact to your bottom line?
Does the company value risk-taking? If so, how do they reward that? Is the company highlighting and communicating those risk-takers and the rewards in which they are receiving? It is critical to measure the cost of the programs and how they drive bottom-line growth. Here is where rewards and learning programs cross and metrics can be measured together.
Benefits think health care is the most metric packed function in HR. It is also a critical component in the rewards package. Realizing the overall costs of health care and its continued rise, is an important aspect, both in attracting employees and your ability to look at the overall plan utilization versus gesture plan enrollment.
When we look at the company plan utilization, we can determine what benefits people use and don’t use. We can then make changes to health care programs with a bigger bottom-line impact for the business and less employed disruption. The healthcare space is booming a savings opportunities.
Are the HR Managers looking at their workers’ compensation claims and comparing them with their short and long-term disability rates?
Do companies see a correlation and burnout, fatigue, and mental health concerns?
This is another example of where training, engagement, and turnover data can be helped and enhanced by looking at your healthcare data. Rewards function allows for greater metric transparency. In organizations that do not yet proper HR initiatives, they can incorporate diversity and equity metrics in their reward strategy.
Do company programs have an unconscious bias in them? As you review the reasons why people come, leave, and stay, Many times, the reward function has a large impact on the answers to these questions. You can incorporate how underrepresented groups are being impacted by their referral programs, pay practices, and benefits and if they find correlations, you can use this data to fix them.
As we can see, the reward function touches each and every function in HR. How a company reward recruiting, attracts, and retain employees, reward employees, and train employees are all co-own strategies between the various HR functions.