Total Rewards Menu is Expanding with Tangible and Intangible Offerings

/in , /by
Bruce and I attended a recent meeting with an employer that was expressing the need to offer an expanding menu of tangible and intangible total reward offerings to meet the diversified needs of its multi-generational workforce. The Human Resources Director was asking how to value the non-compensation benefits, rewards and work-life balance menu items. The director wanted to determine the value of the organization’s non-compensation related offerings as a means to calculate the value for their total rewards package. This organization wants to offer competitive wages, benefits and other employee engagement options as part of its compensation philosophy.

How Important Is Total Rewards Philosophy?

/in , /by
How Important Is Total Rewards Philosophy?

What is your philosophy? It is important that organizations establish a total rewards philosophy as this guides the decision-making as to what the organization will offer to its employees. If the company adopts a “Risk/Reward” philosophy, then more emphasis will be placed on performance-based incentive plans/payouts and base pay will tend to be below market level midpoint by roughly 10 – 15%. If an organization adopts the “Employer of Choice” total rewards philosophy, it is making a commitment to offer a total package that attracts qualified candidates to the compensation/ benefits leader organization. If a company adopts a “Maintain Market Level” philosophy, a majority of the employees will be paid and continue to be paid around the market level midpoint, and benefit and incentives will be at the norm levels.