TOTAL REWARDS PHILOSOPHY: CRITICAL TOOL TO ENGAGE EMPLOYEES
Do Your Employees Value Your Total Reward?
Employees felt they were not paid competitively and that the bonus opportunities available to them were not incentivizing. Companies spend a lot of time and money developing the total rewards program. Regardless their effort though, employees did not feel their reward programs were motivating.
So, What Your Company Needs?
Most companies have clear goals to reduce their cost whilst improving the quality of employees. To achieve this condition, the critical and fundamental tools you will need is ‘Total Rewards Philosophy’.
What is Total Rewards Philosophy?
Optimizing total rewards is important to ensure your total rewards program align with employees value proposition. Total Rewards Philosophy is all of the tools available to the employer that may be used to attract, motivate, and retain employees (worldatwork.org). Total Rewards include everything the employees perceives to be value resulting from the employment relationship. According to helioshr.com, the objectives of formalizing total rewards philosophy are:
- Attract and motivate employees while increase fairness perception on organization;
- Provide transparency and accountability on organization total rewards approaches;
- Define clear strategies to align human capital with company goals;
- Balance cost control and market competitiveness.
Philosophy of Given Total Rewards: Considering Employers and Employees Perspective
In total rewards philosophy, you must consider the reward based on both employers and also employees perspective. From the employers perspective, total rewards is given to increase the values of company (align with vision and mission, values, culture, and strategy). From the employees perspective, total reward is seen as their consideration to pursuit meaningful work (align with motivation, personal values, and competency).