Creating a total rewards policy might seem like juggling flaming batons, but it doesn’t have to be that way. For companies prioritizing employee experience and putting people first, crafting a winning strategy is about balance, research, and heart.
In this blog post, we’ve broken down the complex world of compensation into three actionable steps that will get you on the road to the total rewards destination.
This strategy will build employee satisfaction and establish your organization with heart in today’s competitive workforce.
Contact us if this sounds like you.
What are Total Rewards? (Hint: It’s More than Paycheque)
Total rewards can be everything an employee gains from their relationship with an employer. Effective reward strategies should be adaptable, culturally informed, and aligned with organizational goals. The concept balances monetary compensation with intrinsic and extrinsic motivators, contributing to employee satisfaction, performance, and retention.
This includes:
- Financial compensation
- Benefits
- Career development opportunities
- Work-life balance
Think of the employees at a compensation buffet. Some may pile on the monetary mashed potatoes; others might lean toward the recognition roast or flexibility flan.
At the end of the day, the bill should come out heavy on employee value and a supportive work culture that builds a strong company.
Why Total Rewards Matter More than Ever
The modern workforce isn’t just looking for a job—they’re looking for a workplace that becomes their community. Total rewards policies are no longer optional; they’re essential to attracting, retaining, and motivating top talent. With a diverse and dynamic workforce, getting this right can set your company apart.
Remember, your employees are your greatest asset (and no, that’s not just a cliché we throw around in HR). Investing in them through a thoughtful total rewards strategy will pay dividends in engagement, productivity, and loyalty.
The Three Steps to the Top of the Total Rewards Ladder
Ready to whip up a total rewards strategy that makes employees rave about their workplace? Follow these steps:
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Start with a Reasonable Budget
The foundation of any successful total rewards policy is a budget that won’t leave your finance team hyperventilating. Think Goldilocks: not too big, not too small, but just right. Assess your organization’s financial capabilities and set realistic expectations.
Pro tip: A reasonable budget doesn’t mean you skimp on care. It means allocating resources wisely. For example, consider enhancing benefits like wellness programs or professional development opportunities. It’s amazing what a little career coaching or mental health support can do for employee well-being (and productivity!).
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Be Competitive but not Regressive
Competitive compensation doesn’t have to be just about the numbers—it’s about the overall employee experience.
The truth is out there, and you can find it by researching industry standards, employee preferences, and competitor offerings. Tools like salary surveys and benchmarking reports can help you understand what’s working in your sector.
To be competitive, consider offering:
- Flexible work policies
- Tuition reimbursement
- Unique perks like office support dogs
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Make Employees Feel Cared for in Their Most Vulnerable Times
Companies can show commitment to the soul of HR by putting together a human total rewards strategy. Competitive pay and benefits are non-negotiables, but true employee loyalty comes from showing up when it matters most. Think health benefits that actually cover meaningful care, generous parental leave, or retirement plans that don’t make people Google “How to retire on $5 a day.”
Don’t forget to consider life’s unexpected challenges. Offering employee assistance programs (EAPs) or financial support during crises can leave a lasting impression of care and trust. Your employees’ well-being should be front and center, no matter the circumstances.
Bring Forward the Human in HR
Let’s face it: HR can sometimes get a bad rap for being all rules and no fun. But building a total rewards strategy doesn’t have to feel like slogging through a corporate textbook. Inject some humor and humanity into your communications—after all, nothing says “we value you” like an HR newsletter that makes people laugh (instead of groan).
For example, when rolling out your new policy, how about a tagline like: “Total Rewards: Because You’re Totally Worth It”? Or offer workshops titled “How to Use Your Wellness Benefits Without Just Signing Up for the Gym (Again).”
Remember to Build with a Heart
We’ve said this before, and we will keep saying this: a great total rewards strategy is about more than perks or paycheques. It’s about understanding your employees, valuing their contributions, and showing up for them in ways that matter.
So grab your budget, do your homework, and create a policy that’s equal parts practical and meaningful. Oh, and maybe throw in those office dogs while you’re at it—because who doesn’t love a pawed office mate?
We’re always excited to talk about total rewards. Reach out to us for more information or to schedule a consultation.
