7 Considerations for Implementing a Total Rewards Systems
Introducing a total rewards system to your company could have significant advantages for your company. For one, it helps employees see the full value of working for your organization. For another, it drives communication (and thus, boosts engagement) because it takes an ongoing approach instead of a being done as a yearly event (i.e., only issuing reward statements).
Yet, there a few factors that are important to consider before taking the leap. We’ll review some of the most significant points to think about, below.
- Company Size
Naturally, introducing a total rewards system in a small to mid-size company will require fewer logistics than doing so in a large-scale organization.
- Global vs. Domestic
Because there are many variables to consider in total rewards, such as the specific perks that may vary by location, it could become challenging to roll out a total rewards program for a company operating on a global scale. With that said, it’s not impossible. It may simply require some fine-tuning and strategic planning. You may also have to consider language differentiation as well, if needed.
Choosing what to include in your total rewards system is also important. You can make it as broad or detailed as you’d like, but most importantly, you should make information available that employees want to see most. For instance, if many of your associates may be taking graduate classes, they may be interested in seeing tuition reimbursement factored into their total rewards. Or, they may prefer to see options for paying off student loans. There are virtually limitless options in terms of what you can include in your total rewards system.
What features do you absolutely need in your total rewards system or statement? It’s helpful to have a concrete idea of your needs before seeking a vendor.
- Audience Differentiation
Will you make the total rewards system available to all of your associates, or only some? Should there be certain elements that only specific employees can access? Consider how you’ll present which information to your audience, and how you’ll need to differentiate what’s presented to whom.
Leading up to the time of your total rewards system roll-out, you’ll want to ensure that HR, communications, and marketing are all maintaining a tight relationship. Your communications team can help you craft engaging content, and your marketing team can assist in terms of branding.
- HR Software Vendors
Choose a vendor that offers a solution which best matches up with your needs. Consider viewing demos of their products and learning as much as you can to help inform your decision.
Initiating a total rewards system will require some strategic planning, as well as an investment of time and resources upfront. Yet, the advantages you’ll experience – which include improved retention, higher engagement levels, and even better productivity – will certainly prove that the effort is worthwhile in the end.