Rewards programs key to retaining talent, improving performance – Bersin
Most organizations significantly lag behind their employees’ expectations for total rewards offerings, according to Bersin’s High-Impact Rewards (HIR) research, a new study area that focuses on employee total rewards.
The study released in April 2018 suggests that, with the right strategies in place, organizations that fall short of employee expectations can build a rewards brand that attracts, retains and motivates the most talented workers.
As employees and candidates become increasingly mobile and assertive, they drive organizations to expand their definition of “rewards” beyond traditional compensation and benefits programs. The most mature, high-performing rewards organizations have embraced this sweeping change with agile, comprehensive programs that align with broader business goals.
Bersin HIR research points to significant challenges facing HR organizations, but also identifies steps for evolving their rewards offerings. Top suggestions include:
- The rewards function today often alienates employees and undermines employment brand. There appears to be a significant lack of enthusiasm by employees for their organizations’ rewards offerings.
- Mature rewards organizations listen, learn and design offerings for their “customers”, building on data and analysis to understand employee preferences.
- High-Impact Total Rewards is about “best fit,” not just “best practice.” Combining a more employee-centric view of rewards and rewards strategies that are aligned with business goals results in specific rewards offerings that act as competitive differentiators.
To help companies improve their rewards strategy, Bersin has researched traits that can influence total rewards maturity. The six factors with the greatest impact are:
- aligned strategy,
- holistic philosophy,
- employee focus,
- effective communication,
- greater rewards frequency, and
- use of team rewards.
Bersin is Deloitte’s knowledge base for human resources professionals.