A total rewards strategy articulates an institution’s overall plan for the rewards it will offer in exchange for the excellent work and commitment of its faculty and staff. The actual statement can be concise or detailed. To be effective, the strategy should capture the full set of rewards, both financial and nonfinancial.
The Top Five Advantages of a Total Rewards Approach
•Increased Flexibility - Traditional companies had a paternalistic approach to reward; one benefit for employees was that they could be relatively confident of staying with the same employer for as long as they wished, possibly for their entire working careers. • Improved Recruitment and Retention - Demographic changes have resulted in a more diverse workforce demanding different returns from work. Total reward is a mindset that enables employers to look at the bigger picture. •Reduced Labour Costs/Cost of Turnover - Total reward links cost control with the demand by employees for greater choice and flexibility in the workplace. It also offers employers the opportunity to differentiate and create cultural brand, and thence competitive advantage; it is hard to replicate •Heightened Visibility in a Tight Labour Market - Total reward is potentially very powerful in assisting employers align their HR and business strategies with employee needs, to improve performance. •Enhanced Profitability - In a fully integrated total reward package all the elements of the employee’s work become part of a single flexible package. It is only when all the elements of the reward package (that is, total rewards) are considered within the context of business and HR strategies that the total cost of each employee’s job can provide the most valuable return to the organisation Five Common ways a total rewards strategy can go astray
•Trying to re-engineer programs in pieces - When moving to a total rewards approach, review and re-engineer the entire program. Don’t re-engineer the...