Total reward is no longer a new concept. What is new is the interest held by organisations in the belief that this is a tool to improve business performance.
Why the increased focus?
The reasons are numerous and the below are only just a few explanations:
• The volatile economic environment being experienced and the pay freezes witnessed today
• The need for organisations to cut costs but not the package offered to their employees
• A desire by companies to develop and create an appealing package to attract quality applicants and retain these key people once recruited
• Develop an employer brand and become an employer of choice
• Create a caring image, an organisation that considers employees’ changing needs, encourage commitment and employee engagement which ultimately leads to improved business performance
A number of views exist on what total reward involves. There are those organisations that claim total reward includes everything an organisation can offer in the remuneration package; to the other end of the spectrum, where only certain elements are included but organisations still maintain they are offering total reward.
Total reward does not just consider the financial aspects alone but also embraces the non-financial elements to create the overall remuneration package. Non-financial can include training, career development and recognition. This recognition may only be a simple ‘thank you’ and ‘well done’. We all know how we feel when someone simply says ‘thank you’.
You can find many examples of organisations publicising the positive outcomes from implementing total reward, some just stating how successful the company has been and others providing in-depth statistical information on the impact on recruitment, retention, absence, performance and most importantly business performance.
Overall total reward contributes to a positive and a healthy environment where employees wish to come to work and are motivated to put in that extra effort and go that extra mile.
What can total reward offer us?
Want to know more and find out how total reward can improve your business performance?