Total Rewards. Rain or Shine.

BENEFITS | Mar 12, 2018

The term “total rewards” gets tossed around when comparing company perks or employee benefits. But the term encompasses more than you might realize, and you might have access to even more benefits that you aren’t currently aware of.

According to BizFluent, a total rewards system includes all the advantages that an employer can utilize in attracting, encouraging and maintaining employees. When companies put together these systems in order to attract top talent, they typically focus on five areas: compensation, benefits, professional development, recognition and work-life balance.

CompensationBenefits are the required plans and employer options that a company must offer its employees. This could range anywhere from worker’s compensation and Social Security, to paid time off and pension programs, and anything in between.

Next, professional development covers a wide range of educational and self-improvement opportunities. These channels for advancement could be tuition reimbursement, online classes, leadership courses, internships, seminars and much more. The idea behind this is to help develop an individual while they are with the company, in the hope they can use these new skills to push themselves further in their future career. The recognition aspect of total rewards can vary from individual praise for a job well done, to a formal acknowledgement program such as Employee of the Month. Incentives also play a crucial role in motivating employees to perform well for this kind of public appreciation.

Lastly, work-life balance means providing employees the opportunity to meet their personal obligations or goals. Whether this be paid vacation time, incorporating workplace flexibility by allowing people to work from home, caring for children or dependent adults, or community involvement, it’s important to allow downtime in some way or another. Not only will this keep employees happy and help maintain their stress levels, it will end up increasing productivity in the long run.

In order for companies to set themselves apart from the rest, most will throw in some extra benefits to their packages. So, while most people think of health and dental insurance as their benefits, often companies will also include discounts on fitness programs or gym memberships, or health incentive programs. Disability plans and retirement options with company contributions are also considered benefits.

When it’s all said and done, companies often provide employees with a total rewards statement. According to HayGroup, this is a “personalized document that communicates the overall value of financial rewards such as base pay, incentives and benefits. These can also be used to reinforce the communication of less tangible benefits such as work-life programs, learning and development and flexible work arrangements.” Statements show the company’s investment in making sure that employees are compensated for their quality work and contribution to the workplace. Total rewards statements also help ensure that the return on investment is high. If employees are unaware of all the benefits they have available to them, they won’t take advantage and thus, the company will experience a low ROI. With a competitive total rewards program that employees participate in, turnover will likely decrease while retention rates increase.

The key to creating a great total rewards program is to define your . This essentially means defining your internal brand and working to ensure that all of your employees, initiatives, communications and plans support this brand. Essentially, the EVP is everything that makes up the heart and soul of the company, and it all starts with great employees like you.

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If you’re ready to change how your people use their benefits, experience company culture, and take actions that drive success at work and in life, we’re ready to help. Together, we can raise the bar on your employee communication and produce measurable results so that you can grow and thrive.

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