How We Recommend Building Attractive Total Rewards Packages
We all know the phrase… “money isn’t everything”.
Well, this cliché rings true when it comes to job satisfaction and retention in today’s workforce. Yes, competitive salaries are important, but they’re not the only factor that employees consider when evaluating their overall job experience.
Enter “total rewards”—a holistic approach to employee compensation.
In this Thankbox article, we’ll take you through what an employee total rewards strategy is, why it’s beneficial for your company’s success, and how you can create a valuable total rewards package.
Let’s get started!
What is a total rewards strategy?
A total rewards strategy is an HR approach companies use to offer a combination of compensation and personalised benefits to their employees. It goes beyond just wages–it’s a full package of both tangible and intangible rewards, like recognition, healthy work-life balance, and career development opportunities.
A strong total rewards strategy involves various elements tailored to meet the diverse needs of your employees, with things like:
Compensation (e.g., base salary, bonuses, and commissions)
Benefits (e.g., health insurance, retirement plans, and paid time off)
Work-life balance initiatives
Perks (e.g., peer recognition programs, gym memberships, and tuition reimbursement)
Career development opportunities (e.g., training and mentoring programs)
All in all, by offering a well-rounded rewards package that combines monetary and non-monetary incentives, you can cater to the multidimensional preferences of your workforce.
Why is a total rewards strategy so important?
Establishing a great total rewards strategy is quite essential if you want to positively impact job satisfaction, engagement, and retention.
Improve employee satisfaction: An inclusive total rewards strategy encompasses competitive salaries, benefits, and non-monetary perks, making employees feel valued and appreciated, ultimately enhancing their job satisfaction.
Enhance recruitment: A strong total rewards package is more appealing to employees and helps to attract top talent.
Increase retention and engagement: Recognising and rewarding the contributions of your employees can lead to higher employee loyalty and engagement, as they’re more likely to stay with a company that values their work.
Better organisational performance: Motivated employees often result in improved job performance, which positively contributes to your company’s overall success.
Basically, having a well-thought-out total rewards strategy indicates that your organisation is a premier employer.
Give Your Employees The ‘Total Reward’ With Thankbox!
Recognition programs are a valuable component of a successful total rewards package. Fortunately, Thankbox offers the best of both worlds when it comes to monetary and non-monetary rewards. It's the perfect way to show your employees you’re always thinking of them!
What elements make up a great employee total rewards package?
Now let’s explore the foundational components that make up a successful total rewards package: monetary and non-monetary rewards.
1. Monetary rewards
Financial rewards are a necessary, but not complete, part of a comprehensive total rewards package. They directly impact your employees’ financial well-being and give them a sense of financial security for the future.
Compensation
Of course, your monetary rewards will start with the regular ongoing pay that your employees receive for their work. To create attractive compensation, you’ll need to include additional features like overtime pay, bonuses that are tied to performance, and any commission opportunities.
Employee benefits
Your employee benefits are a form of non-cash compensation that contributes to financial well-being. So this includes health care benefits, life insurance, and retirement savings plans.
2. Non-monetary rewards
Now, here’s where you need to pay close attention. Non-monetary rewards are the incentives and benefits your company offers employees that don’t involve money. They can be pretty effective in boosting employee morale, motivation, and engagement.
The goal with non-monetary rewards is to create a positive company culture and show your employees that they’re valued as more than a metric.
Recognition programs
Recognition programs are amazing for keeping employees motivated to do their best because they're assured that their good work will be acknowledged.
These programs can come in different forms like:
Giving out spot awards
Establishing an ‘Employee of the Month’
Simply saying ‘thank you’
While you’re at it, why not take advantage of peer recognition platforms like Thankbox to show your appreciation in a more unique and memorable way. Our online group greeting card allows you to involve your whole team in celebrating personal achievements with sentimental messages, funny GIFs and photos.
The best part? You can even collect money from teammates to offer a thoughtful digital gift card to an employee who’s gone above and beyond, or is celebrating a personal milestone. With direct connections to over 700 retailers (and the option to redeem the cash as a Prepaid Visa), your employees will feel truly appreciated.
Work-life balance
Employees are more likely to stay loyal to workplaces that prioritise their well-being.
As part of your total rewards package, you can offer flexibility through hybrid working opportunities, personal time-off, and adequate holidays to make sure your employees can maintain a healthy work-life balance.
Personal and professional development programs
A company that provides professional and personal development programs for their employees as part of their total rewards package shows that they're willing to invest in their employees long-term. This can come in the form of training programs, mentorship opportunities, and career-building workshops.
Career advancement opportunities
Offering career advancement opportunities and promotions within your total rewards package is a great way to motivate your employees to perform. It helps give them direction and work towards a successful future in your organisation.
You can even incorporate leadership training activities to get your employees ready to scale up within your company.
Perks
Perks are additional non-cash benefits beyond those usually provided by an employer, like free parking or subsidised cafeteria meals. Try to be creative with your perks so that employees can experience the unique value your company offers. For example, you can provide perks to help blow off steam, like gym memberships, meditation sessions, or weekly office games.
A few things to remember when building your total rewards package
While companies may go to great lengths to position themselves as ‘great places to work’, it doesn’t often translate into a great employee experience… but why is that?
One common reason is that the total rewards are never fully communicated to employees, and they have little information about how the company provides such opportunities for personal development, inclusion, recognition, and autonomy.
To make this a bit more concrete, here are some worrying stats:
Benefits make up 33% of an employee’s total compensation.
Only 7% of employees fully utilize their benefits packages.
As we discuss in our HR metrics guide, make sure you’re tracking utilization rates for every part of your company’s total rewards package. If you find that employees aren’t taking advantage of certain benefits or perks, it may be a sign that they are not fully aware of them or don't perceive them as valuable.
Give Your Employees The ‘Total Reward’ With Thankbox!
Recognition programs are a valuable component of a successful total rewards package. Fortunately, Thankbox offers the best of both worlds when it comes to monetary and non-monetary rewards. It's the perfect way to show your employees you’re always thinking of them!
Wrapping up
As we’ve explored, your total rewards package should include more than just monetary compensation. Make sure to consider factors like benefits, recognition, career development opportunities and a healthy work-life balance.
By taking a holistic approach, you’ll be able to create a comprehensive package that not only attracts top talent, but also retains them for the long haul.
With Thankbox, you can give both monetary and non-monetary rewards all at once. So why not give it a try and create a Thankbox today? Your employees will have a reward that they can remember for years to come!
Images: Cover | Hand putting coins in a piggy bank | Man giving a presentation to a group of people | People practising yoga outside
