The Total Rewards Survey developed by Mercer analyzes the practices companies use to align compensation, benefits, training and career development with today’s business priorities. Findings from the survey show that while more than half (56 percent) of organizations made a significant change to their total rewards strategy in the past three years, less than one-third (32 percent) said their total rewards and business strategies fully align.
Eighty-nine percent of organizations that participated in the survey ranked attracting and retaining the “right” talent as the most noteworthy challenge of their overall total rewards strategy. Additional challenges that were noted as very important included: collecting relevant market compensation data, keeping rewards affordable, communicating the value of rewards to employees, and ensuring pay for performance and performance differentiation.
From experiences with many clients, Mercer has highlighted several actions employers can put in place to address the holes between total rewards strategies and their business strategies:
“As companies focus on the cost of their talent, attracting and retaining the ‘right’ employees and differentiating rewards for top performers are challenges that can be made easier by incorporating the use of workforce analytics,” said Mary Ann Sardone, Partner in Mercer’s Talent practice and Regional Leader of the firm’s Rewards segment.
“Additionally, incorporating offerings such as career development and work/life balance initiatives into total rewards strategies caters to the needs of [employees] in the workplace.”
Leading the list of ways to enrich the employee experience in other ways than pay is giving employees the ability to make a difference in their job functions. Other contenders on the list were career progression, healthy living/wellness and recognition.
For additional information on recent trends and developments in total rewards strategy, including an in-depth look at what North Carolina employers are doing, please join us for the 2014 Compensation and Benefits Conference on August 14 and August 15 at Raleigh’s McKimmon Center.
This year’s keynote presenters and presentations include:
The Future of Attraction, Retention and Motivation: How Compensation Fits into the Process Anne Ruddy – WorldatWork
Green Goldfish – 15 Ways to Drive Engagement & Reinforce Culture Stan Phelps – 9 INCH marketing
What Would Healthcare Look Like If Getting It at the Lowest Cost Was Your Key Priority? Skip Woody – Hill, Chesson & Woody Employee Benefit Services
Additional topics that speakers will cover at the conference include: how compensation affects retention, the future of healthcare cost, driving employee engagement, analysis of the latest market data in total rewards, building high-performing teams, and understanding survey data.
For more information on conference speakers and topics, please visit www.capital.org/compconf.