Total rewards is much more than salary and if you don’t recognize and publicize that, there is no way that your employee ever will. The total rewards packages can include:
- Paid time off (Vacation, personal time, paid holidays, floating holidays)
- Flex time opportunities
- Insurance benefits
- Work/Life balance
- Recognition programs
- Quality performance management
- Career growth opportunity and development
- Profit sharing
- Performance bonuses
- Any other perks that you may offer such as cars, memberships, contests, gatherings, etc.
All of these items are quantifiable in some way although it is not always financial. For example, for someone who needs the flexibility to get their children on and off the bus, having the opportunity to do that may be much more important than a higher salary. The key to designing a “quality” compensation package for an employee is by designing it to speak to them based upon what they value.
The key to motivating and attracting talent with your total rewards package is the ability to communicate it to each employee so they remember all of the little extras that they get by being part of your team. Develop a format to easily do this so that the financial and non financial items are considered. Also, don’t do this at “review time” or it will look like your way of saying, “I don’t need to give you more, I already give you all of this”. It is better to find a way to communicate it off-cycle perhaps at the end of Q1 outlining what their previous year’s package included.
Most importantly, make sure that however you reward each employee is fair in that one person can not compare their package to someone else and say you favored one over the other. Once you open this conversation there will be questions and you should be prepared to answer them publicly or you risk the possibility of being accused of playing favorites and that never ends well.
Michael Giuffrida from Southington CT has been operating businesses since 1997. He is an experienced entrepreneur in business management, profitable growth, business valuation, mergers and acquisitions, and information technology managed services.