Issues related to pay equity were already front and center before the pandemic hit. But with COVID-19 in the mix, companies have been scrambling to put new systems and processes in place to keep apace in today’s chaotic environment. For example, they’re increasingly taking the opportunity to reshape their total rewards strategies to deal with uncertainty and build agility. However, the best such strategies are based on data and analytics. Can you navigate your overhaul alone — or do you need help?
Here’s how compensation consultants strengthen your workforce.
What are Total Rewards?
Let’s start there. These are tools used by employers to attract, motivate, and retain employees.
What Do Total Rewards Consist Of?
Total rewards strategies usually include compensation, benefits, work-life flexibility, performance and recognition, and opportunities for professional growth and development.
— Compensation. This can include fixed pay, which is usually salary. The amount usually depends on the company’s structure and pay philosophy. Variable pay, meanwhile, can vary depending upon the achievement. It may be a one-time deal such as a bonus. Other forms of pay include performance shares, stock options, performance units, etc.
— Benefits. These usually include medical, dental and vision insurance, plus retirement options and wellness programs like fitness programs or even yoga breaks.
— Work-life options. It’s no secret that, more than ever, today’s employees want — and in some cases, demand — opportunities to work remotely. Many organizations can offer that flexibility. In addition to remote work, many employees want flexible schedules, paid time off, family care leave, or even community volunteerism opportunities.
— Performance and recognition. Everyone likes to be recognized for their hard work and dedication. Recognition programs can include employee-of-the-month awards, frequent one-on-one meetings with leaders, appreciation outings, and goal-specific awards.
— Growth and development. It’s crucial to provide opportunities for employees to grow and develop during their tenure with your company. These can be accomplished through mentoring programs, training, leadership coaching, or tuition reimbursement.
You’re better off, though, having a compensation consultant help you bring all the elements together.
Are Great Pay and Benefits Enough?
In a word, no. While a terrific pay package obviously remains vitally important, it’s a new ballgame, and employees are leaning on organizations to understand that. Compensation consultants like Mercer are leading the way, conducting a recent survey that found, among other things, that 37% of employees are motivated by strong corporate values, mission, and purpose. What’s more, half of employees want to work for an organization that offers “responsible” rewards.
How Compensation Consultants Can Help
They’re all different, but an experienced consultant such as Mercer, which has vast expertise in total rewards and all aspects of human resources, can use nonpareil datasets to help you put together a knock-out flexible rewards strategy that will improve the employee experience as well as the bottom line. Data and analytics are key.
An excellent consultant will be able to create stimulating employee experiences, use analytics to establish a total rewards strategy, and make sure you’re able to pivot as things change. It also should be able to produce a career framework that links up with HR, and generally get you the most for your money.
As you can see, compensation consultants can go a long way toward helping your organization attract, retain, engage, and motivate employees. Areputable HR consultant such as Mercer can help you design a total rewards strategy, build agility with a sound job architecture, and optimize your return on incentive investments. Hey, sometimes it’s best to leave stuff to the specialists … and this is one of those times. After all, your employees are at the center of your enterprise. You’ve got to get your rewards right.