◆ It is total rewards—the monetary and nonmonetary return provided to employees in exchange for their time, talents, efforts and results.
◆ Well-crafted total rewards strategies align appropriately with five key areas to attract, motivate and retain talent that produces desired business results.
At Starbucks, it is known as "your special blend." At Google, it might include bringing your dog to work or pool tables in the lobbies. At Nordstrom it may be low-cost health insurance and on-site daycare.
It is total rewards-the monetary and nonmonetary return provided to employees in exchange for their time, talents efforts and results. Lots of research has shown that the solid benefits plans don’t drive employees engagement as much as a totally integrated model that reflects the next generation of thinking about total rewards. It puts total rewards in context, presents a perspective of the profession and represents the art of combining five elements into tailored packages designed to achieve optimum business results.
Exploring the Key Areas
Following is a brief description of the five elements of the new WorldatWork total rewards model.
This includes fixed (base ) pay and variable pay, including short and long-term incentive pay. While one of the most traditional elements of total rewards, it remains a necessity for business success.
While this area seems to be continuously challenged during this time of shrinking health-care benefits, and expanding health-care premiums, businesses are trying to redefine the traditional benefits program. In basic form, benefits programs protect employees and their families from financial risks. This area includes traditional programs such ad retirement and medical and dental insurance, as well ad nontraditional programs, such as identity theft and pet insurance.
This area refers to any programs that help employees do their job effectively, such as flexible scheduling, telecommuting, child-care programs, etc. One of the most talked about areas of late, work-life has become the “secret sauce” in many organizations’ recipes for business success.
Performance and Recognition
In talent management, performance involves the alignment of organizational and individual goals toward business success. Recognition is a way for employers to pay special attention to workers for their accomplishments, behaviors and successes. Recognition is necessary to reinforce the value of performance improvement and foster positive communication and feedback. It can be programmatic or simply cultural in execution.
Development and Career Opportunities
This key area focuses on the concept that motivating and engaging the workforce entails planning for the advancement or change in responsibilities to best suit individual skills, talents and desires. In this way, both the business and the employee benefit from this symbiotic relationship. Tuition assistance, professional development, sabbaticals, coaching and mentoring opportunities, succession planning and apprenticeships are all examples of career-enhancement programs…
The Art and Science of Total Rewards
Total rewards strategy is the art of combining these five elements into a tailored package designed to achieve optimal motivation for the individual. The new model seeks to better elaborate all the factors that drive attraction, retention and motivation in a way that should be intuitively reasonable to most total rewards professionals.
WorldatWork (www.worldatwork.org) is an international association of human resource professionals and business leaders focused on attracting, motivating and retaining employees. Founded in 1955, WorldatWork provides practitioners with knowledge leadership to effectively design and implement strategies and practices in total rewards – compensation, benefits, work-life, performance and recognition, development and career opportunities. WorldatWork supports its 30,000 members and customers in 75 countries with thought leadership, education, publications, research and certification.