Designing a complete rewards plan is like building a house, according to Anand Parsan, National Compensation Practice Leader at Eckler: you need a strong foundation before you start putting on the extras. Speaking to HRD, he described how a comprehensive incentives plan might perhaps promote a more inclusive workplace in addition to motivating productivity.
“You need to start by examining what’s suitable for each business and, of course, you will need to guarantee that your offering is flexible, inclusive, and fair,” he said in reference to developing a holistic rewards plan. According to Parsan, an organization may do this by following five essential steps:
- Consult with employees to learn what they value.
- Early and frequent leadership engagement
- Set the organization’s priorities and goals.
- Examine what you already have in place and identify any potential gaps.
- Create a plan that supports objectives and priorities and is consistent with the corporate culture and values.
You should also think about the kind of talent you need to support organizational goals, where you’ll get it, and your competitors, says Parsan. He thinks businesses should begin by assessing how their benefits stack up against those of competitors.
It’s also not just about the money if you want to establish yourself as an “employer of choice.” While competitive salaries are a major draw for new employees, it’s also important to offer a complete overall incentives program that caters to the demands of all your staff members. Companies should consider a range of strategies to draw in, recognize, and keep talent. Up to five generations may work for the same organization, according to Parsan, but not every generation will share the same values.
In order to achieve both short-term and long-term objectives, your total rewards plan should continue to be adaptable. For instance, if a company has the funds to considerably raise salary or other benefit packages, they may want to think about short-term incentives like a bonus for top achievers.
In fact, 26% of respondents are offering greater incentives this year, and 8% expect to do so in the near future, according to Eckler’s latest pay planning study of 269 employers.
