From salary to full package: 5 tips to perfect your Total Reward strategy

Total Reward represents a combination of all financial and non-financial rewards that an employee receives from their employer. This includes not only salary, bonuses, and pension schemes, but also secondary benefits, the work environment, development opportunities, and the recognition employees enjoy.

Here are five ideas to consider when perfecting your Total Reward strategy:

1. Engage your employees in a meaningful purpose

Employees are looking for more than just a salary. They want to feel connected to a meaningful purpose and have a positive impact on the environment and society. As an employer, you can respond to this need for individual engagement. By actively involving your employees in your company’s social mission, you increase their involvement, loyalty, and pride. For example, allow them to contribute to causes that matter to them, such as volunteering, mentorship, sustainability projects, and more.

2. Make the reward process transparent

Every employee desires fair treatment and a fair compensation and benefits package. By giving your employees more insight into their reward package and how it compares to that of their colleagues (internal equity) and to the market (external equity), you address this important need. You can use benchmark data from Agoria’s biennial salary survey in collaboration with Korn Ferry for this purpose.

3. Personalize the reward package

Each employee has unique needs and preferences, often influenced by their life stage. Therefore, a ‘one size fits all’ approach is no longer appropriate. You can address this by providing more choice and flexibility in your total reward approach. Some employees may value a higher salary more, while others might prefer more free time, education, or health insurance. By giving employees more control over their reward package, you better cater to the diversity and individuality of your workforce.

4. Focus on well-being

Employers and employees are increasingly aware of the importance of good physical and mental health. "Mens sana in corpore sano" is a win-win for all parties. It benefits the employee as an individual and also boosts their productivity and engagement at work. As an employer, you can offer a range of wellness initiatives and benefits that support your employees' health and happiness, such as wellness programs, fitness subsidies, mental health support, financial education, and counseling.

5. Create a culture of recognition

Employees appreciate being recognized and rewarded for their achievements. Therefore, create a culture of recognition within your organization where success is celebrated, and continuous improvement and innovation are encouraged. In such a culture, recognition comes not only in the form of salary or wages but also through non-financial means such as feedback, praise, awards, career development, and learning opportunities.

Remember, giving recognition and appreciation is an ongoing task. It should not be confined to an annual cycle or fixed evaluation moments. Moment-to-moment management is crucial in valuing employees. Show recognition and gratitude here and now, and do not wait for the next performance review. This requires a strong presence from the manager—not only to seize the moment but also to find a form/tone of appreciation that aligns with what the employee values.

Total Reward is a broad concept, and the above tips are just some of the avenues you can explore as an employer. Making the right choices that fit the goals, values, and culture of your company is what matters most. Identify what makes your company unique and align your reward approach as consistently as possible with that. It is your unique weapon in the war for talent.