Crafting a well-rounded total rewards programme
Head of Compensation and Benefits,
Singapore and Malaysia, Coca-Cola Singapore Beverages
Employers of choice establish themselves differently in not only the provision of fundamental compensation and benefits, but also ensuring a well-rounded total rewards programme.
A well-rounded total rewards programme plays a large role in attracting, retaining and motivating employees along prevailing market trends. It enables organisations to hire qualified workers with differentiated compensation and benefits plans. This leads to better results, customer service and higher productivity.
Below are four insightful considerations for a well-rounded total rewards programme:
A heathy workforce contributes significantly to company success and the management of workforce’s medical costs. Engaging, enabling, and energising the workforce with regular health and wellness programmes creates a significant advantage for the company. Regular active and healthy living programmes will boost employee engagement, and forge a healthy work culture.
A compensation strategy should also include rewards for employees based on workplace performance. This may include the commonly adopted commission-based system that rewards employees for total amount of sales or recognition rewards for good results. A reward system should be easy for employees to understand and also encourage everyone to work harder.
Differentiated Compensation and Benefits
It is important to design the financial compensation and benefits package to meet different employees’ needs.
When differentiating the compensation and benefits programmes, it is important to consider fairness as an element, as this is always on the mind of employees. Employers of choice establish differences between themselves and competitors in key benefits, such as life insurance, disability, paid time-off and retirement.
Other non-financial compensation refers to areas such as career development and advancement opportunities, as well as opportunities for recognition.
Retaining quality workers requires a strategic plan for compensation that rewards employees for their loyalty. Compensation based in part on seniority with the company shows new employees that the business values workers who choose to remain with the company long-term.