TOTAL REWARD
Work-life initiatives integral to total rewards
More than half of companies now consider work-life initiatives a staple of total rewards. That’s one of the main findings of a new survey of 741 multinational companies by WorldatWork and Mercer.
According to the researchers, total rewards refers to the deliberate integration of compensation, benefits, work-life, career development and recognition to attract, motivate and retain talent. “The State of Total Rewards Integration” survey was conducted to explore how far companies have come in adopting this approach.
%ADVERT%
When asked to define total rewards, six in ten respondents (59%) included work-life (flexible work schedules, extra vacation and sabbaticals) in addition to compensation (base salary, incentives and guaranteed payments) and benefits (retirement and medical).
Other key survey findings
The top three business objectives for implementing a total rewards programme are retaining high performers, enhancing the company’s financial performance and attracting key talent.
While a little over two-fifths of respondents (43%) experienced a decline in overall revenue in the past 12 months, the majority maintained their investments in total rewards programmes. But changes were made to “allocations”: a large number trimmed merit budgets; some reduced the amount spent on health insurance; while others enhanced or added wellness benefits to their programmes.
When asked what types of changes were made to workplace programmes in the past 12 months, 40% said they enhanced or added wellness programmes to the total rewards mix, while 21% added flexible work arrangements.
More than a quarter (26%) of respondents claim they have a truly integrated approach to total rewards.
A final word
“Total rewards programme elements tend to be managed in disparate functions, and sometimes they're even outside of HR. Leading companies integrate their total reward elements and then train managers to communicate the full value of rewards to their employees.” - Ryan Johnson, CCP, Vice President of Research, WorldatWork.
“The past year has been financially difficult for organisations, and talent considerations have taken a back seat to cost considerations. Balancing no- or low-cost total rewards components such as work-life initiatives with pay and benefits is critical for retaining top performers, attracting new employees and enhancing the company’s financial performance.” - Steve Gross, Senior Partner and Total Rewards Leader, Mercer.
Want to know more?
Title: The State of Total Rewards Integration, WorldatWork and Mercer, June 2010.
Survey details: WorldatWork and Mercer collaborated on this survey, conducted in January 2010, to gauge the practice of total rewards among organisations. A total of 741 multinationals participated in the research.
Availability: The full survey report will be published in June 2010.
Mercer is a “leading global provider of consulting, outsourcing and investment services”. It works with clients to solve their benefit and human capital issues, designing and helping manage health, retirement and other benefits. Mercer’s 18,000 employees are based in more than 40 countries. For more information visit www.mercer.com.
WorldatWork is a “global human resources association focused on compensation, benefits, work-life and integrated total rewards to attract, motivate and retain a talented workforce”. Founded in 1955, it provides a network of nearly 30,000 members in more than 100 countries with training, certification, research, conferences and community. For more details visit www.worldatwork.org.