A total reward system plays a crucial role in a company’s ability to stay competitive. Not only do carefully implemented total rewards programmes increase employee retention, but they also attract new candidates to the company.
Furthermore, total rewards are essential to any company’s internal development strategy. Companies experience more competition than ever from their peers, and the ever-changing landscape of global workforce poses an additional challenge.
In most organisations, a total reward system is connected to the HR department, and its management consists of several team members.
The total reward system comprehends all monetary and non-monetary rewards to the organisation’s employees, including their base pay, benefits and employee incentives.
The aim of implementing a total reward system is to optimise employees’ experience and satisfaction levels through employee remuneration packages, awarding them for their hard work.
Although updating or implementing a new total reward system is a comprehensive task that involves research and consultation with multiple internal teams, it is worth the effort.
Considering that total rewards include compensation, benefits, wellbeing, development, recognition, and much more, it takes a lot of balancing and finding the right formula that will work for your company.
As everyone is aware that businesses, as a whole, be it in any industry, is facing significant economic impacts because of the pandemic. With COVID-19 cases continuing to rise globally, health safety has become a primary concern for many of the organisations.
As a result of which, many organisations are making tough decisions about how to implement social distancing and safety protocols best, to keep their organisation’s employees safe while maintaining an operational business at the same time.
However, businesses feel that this crisis has disrupted the momentum they have built for this year, and has hampered their organisations’ growth.
This year has been a challenge for employees as well. Staying at home and working at odd hours has negatively affected the mental health of many.
During these critical times, UK businesses can make their employees feel better by implementing digital reward programs UK to offer the best benefits from a programme, improve their employees’ mental health and encourage them to stick by their organisation for a longer time.
The following are steps to follow when it comes to implementing a total rewards system.
● Assess the current state of your total rewards
What is the current state of your total rewards? Get the relevant data- meaning your employees’ salaries, benefits you offer, and your employee reward and recognition programme results.
Compare the data with the relevant market data. Most importantly, evaluate if your employees’ compensation is fair regarding their colleagues.
Furthermore, are you offering benefits that employees want? What are the most and least popular benefits? Make sure you ask yourself these questions and more to identify the gaps in your current total rewards strategy correctly.
● What to be included in the employee reward system for your organisation
Choosing what to include in your total rewards system is also significant. You can make it as broad or detailed as you would like, but most importantly, you should make information available that employees want to see the most.
● Measure the cost and impact of a total reward system in your organisation
Although the top metrics that assess the total reward system is related to its cost, however, you need to evaluate their impact.
Employee engagement, employee retention, employee absenteeism, employee satisfaction, etc., are some of the important things that will help you measure the effectiveness of your digital reward programmes in the UK.
In conclusion, these above-stated points are some of the steps that will help you in implementing an efficient total reward strategy in your organisation that is very much needed in 2021.