Topic: TotalRewards Software

The Benefits of Personalizing Total Rewards Statements

No one wants to feel like a number. In fact, people are evaluating their careers and overall job satisfaction by a new set of metrics. This is especially true of up-and-coming generations. Employers are facing a paradox: how can they create a unique and personalized employee experience while also making it scalable and affordable to manage? To solve this unique challenge, many employers are turning to the power of a personalized total rewards statement.

As the demographic of today’s workforce continues to change, new motivators affect how a company attracts employees. In addition, the appeal of the nomadic gig economy poses a serious threat for companies trying to retain top performers who value the freedom of a freelance lifestyle. Despite these fundamental changes in the job market, a study conducted by MetLife finds that customized total rewards statements are a useful tool in both attracting and retaining employees in today’s job-seeker market.

Personalization Matters to the Team

In the past, total rewards statements were a once-a-year occurrence. With the rise in “on-demand” everything from banking to shopping, people have become accustomed to being able to login and manage their lives via a customizable, online system. Employees value the ability to check their total rewards statements anytime, anywhere. Providing access to personalized statements whenever needed serves a dual purpose: it provides an opportunity to deliver a personalized experience that employees have come to expect and it allows employees to validate their value within an organization on-demand.

Competing for Talent in an Employee Market

There’s little doubt that today’s job market is driven by the job-seeker. As candidates grow more sophisticated with the way they receive information, attracting today’s tech-savvy candidates requires understanding their motivators and appealing to them. Similar to static total rewards statements, job offer letters have become forgettable. Today’s candidates want to feel great about a possible job offer. They want to feel like they’re working for a forward-thinking company that truly cares about employees as people, instead of cogs in a machine. Offering customized, digital job offers complete with a flushed-out compensation statement can be an essential component to establishing an attractive company culture, increasing the chances of landing top talent.

Whether your challenge is employee retention or it’s attracting talented job candidates for hard-to-fill positions, it’s possible that the level of personalization in a total rewards statement can make a huge impact on how your company is portrayed in the minds of today’s on-demand, tech-savvy workforce.

See You at the 2017 Total Rewards Conference


If you want to learn more about the current tech-savvy workforce and how to attract them to your organization meet up with us at “On Their Terms: Engaging Millennials (and Your Entire Workforce)” at the #WorldatWork 2017 Total Rewards Conference in #WashingtonDC. See you there!

On Their Terms: Engaging Millennials (and Your Entire Workforce) – Tuesday, May 9, 9:45 AM

Session Leaders:

  • Amy Stern, Director of Employee Engagement Research, BI Worldwide
  • Christy Thompson, Vice President of Humans, Sunglass Hut

People Analytics Can Provide Answers to Age-Old HR Challenges

 

People analytics is listed as one of the top 10 areas for HR teams to focus on in 2017, according to a recent survey by Deloitte. Driving this trend is the emergence of cloud-based programs that record real-time behavioral data from employees. The growing availability of people analytics challenges HR professionals to capture, interpret and leverage the data to impact factors such as talent acquisition, employee engagement and employee performance.

Luckily, these challenges are also major opportunities for forward-thinking HR teams and business leaders. Here are a few ways people analytics can be used to drive employee recruitment, engagement, retention and performance:

Recruiting

HR teams that pull data from internal employee surveys gain critical insight into which benefits are most valued and most used. Research shows that 79% of job seekers value more robust benefits to flat-out pay increases. Keeping track of which benefits are making the most impact to current employees shapes how HR teams build and market unique value propositions outside of traditional monetary compensation. In such a competitive job market, a unique employee perk or benefit can make all the difference in converting potential candidates. HR teams that focus on analyzing current data to drive how they market nontraditional compensation have a much better chance at staying relevant and recruiting top talent.

Engagement and Retention

After hiring an employee, it is important to keep them engaged. Deloitte reports that 91% of workers stay in a job less than 3 years. By recording employee data and analyzing trends in the workplace, HR teams gain a better understanding of the overall employee experience. Figuring out which elements are most positiveand which are not gives critical insight that informs winning retention strategies.  Analyzing the hard data on the overall employee experience mitigates the guesswork of what’s driving engagement and retention. Alternatively, seeing where employees are satisfied, and taking steps to align core policies and programs with employee interests and motivators will help employees feel their input is valued, which directly boosts retention.

Employee Performance

People analytics can also be impactful in monitoring employee performance. A study shows that top performers can deliver 400% more productivity than the average performer. Having ground-level data will highlight and profile top-performing employees so they can be properly recognized. Additionally, people analytics has the potential to identify under-performing managers or departments, so HR can create interventions, move team members around accordingly, or provide training as needed. The ability to record and analyze real-time information about employee performance optimizes productivity and proactively recognizes potential issues with under-performing teams or managers.

As access to people analytics increases, so can the impact of the HR department. Having data that can be used to inform decision-making and investments equips HR to have a greater role in driving business goals. This requires a proactive mindset from HR leaders – companies that seek out ways to capture people analytics and leverage it in their day-to-day tasks gain an edge over those that use the data as a reactive measure of addressing elements like engagement and retention.

For more insight on how HR can address workforce issues in a proactive manner, check out our blog, “Thinking Forward about Total Compensation.”

Is It Always About the Money?

 

The labor market is more candidate-driven than ever before. Talented job seekers are more tech-savvy and have more access to various tools that help them compare and contrast competing offers. This, combined with different personal motivators, has shifted the influence power in the recruitment process from employer to employee. As a result, many talent acquisition leaders, hiring managers and recruiters are re-approaching how they win over top talent. And as the power shifts in favor of the job seeker, it begs one important question: Does winning the best talent always boil down to offering more money? Exploring which tactics HR teams are using to address current employment motivators highlights the critical debate of monetary versus non-monetary compensation.

Cash Compensation vs. Intrinsic Benefits

For many companies, deciding where to focus their compensation and benefit programs isn’t so cut and dried. A recent study from Glassdoor indicates that 43% of employees expect a pay raise, and 35% said they would leave a job if they didn’t receive one. On the other hand, the same study reports that 79% of employees would prefer new or additional benefits. Choosing between cash or intrinsic benefits largely boils down to specific business objectives, but some industry approaches highlight impactful strategies for engagement and retention, including tactics like:

Offering Unique Benefits & Non-Monetary Compensation

Offering unique benefits and employee perks on top of monetary compensation might help attract talent. Perks like paid sick days, childcare assistance, and gym membership options all ranked above a flat-out pay raise in the study mentioned above.

Being up front about perks and benefits is equally important to attracting top talent. In the Glassdoor study mentioned above, Rusty Rueff, career and workplace expert says: “Employers should be communicating clearly about non-traditional compensation. Recruiters should take note that touting the benefits and perks offered can help win talent of different demographics, industries and occupations.” Making non-monetary compensation a priority can help recruiters remain relevant and competitive in a job market where roughly 4 out of 5 candidates prefer more robust benefits packages.

Salary Transparency

Delivering transparent salary information can resonate with potential candidates more than higher pay. Another survey from Glassdoor, the Global Salary Expectations Survey, found that 69% of employed adults across Europe and North America wish they knew more about market rates for salary and compensation for their positions and skill sets. Proactively offering detailed total compensation statements projects honesty and transparency to job seekers. Recruiting staff that considers salary transparency a high priority may have better success in separating themselves from the competition.

Incentivizing Loyalty

The current labor market is fickle. A Gallup study shows that 51% of workers are looking to leave their current jobs. A proactive and transparent approach to retention strategies will help give candidates a sense of belonging and incentivize loyalty from the moment they receive an offer. In addition, setting up a career development plan for new hires shows employees the value they add to the organization, encouraging a nurturing and supportive approach to career growth that will incentivize potential candidates.

In such a candidate-driven market, enticing and retaining top talent remains highly competitive. Candidates with changing values and a major influence on the overall recruitment experience will continue to affect how companies think about overall culture and how they market themselves to job seekers. Offering a robust benefits package that includes both monetary and non-monetary compensation, having a transparent approach to salary expectations, and focusing on retention are strategies used by top talent acquisition professionals to stay competitive.

Learn more about the benefits of a proactive approach to total compensation statements with this article.