As I mentioned last week, I recently attended the World at Work Total Rewards Conference sponsored by Towers Watson, the leading professional services company that helps organizations improve performance through people, risk, and financial management. The US Strategic Rewards Report (completed by Towers Watson) was highlighted at the conference noting growing companies in the US are investing more in their recognition programs because it is stimulating a greater energized and productive work force than compensation. The results from this year’s US Strategic Rewards Report created quite the buzz throughout the conference.
Total Rewards are tools available to employers to attract, motivate, and retain employees. Total Rewards consists of five elements: compensation, benefits, work-life, performance and recognition, and development and career opportunities. The stress of the current economy has had an affect on the Total Rewards mix. What is the best combination to retain your employees and keep them engaged?
In 2009, recognition hit the radar with 23% of growing companies increasing the use of rewards and recognition while at the same time holding compensation flat or returning it to the former level; if it had been lowered. An additional element of development and career opportunities is now part of the Total Rewards mix. Perhaps it’s because of the Gen Y’s hitting the work force by storm.
In a typical organization, the Total Rewards elements would be weighed and given a perceived value by the employees; then employment decisions are made based on the value they place on the company’s Total Rewards package. The employee has two options; take the job or look for a different employer they believe better suits their needs. More importantly, the Total Rewards elements impact the employee’s engagement and sense of value to the organization, the team, and their job.
Now that’s a look at why recognition is so powerful and is a very low cost way to stimulate engaged, productive, happy employees who take good care of your customers. Recognition is a valuable feedback and role-modeling vehicle. It can also impact your culture – many successful organizations use it as a change accelerator. Whether it is adopting a new system or procedure or merely taking performance up a level.
Cost savings continued to be a strong focus at the conference; organizations are significantly reducing administration costs and increasing the perceived value of their existing recognition program by simply putting all recognition (safety, productivity, on-the-spot, manager’s discretion, health/wellness, years of service, and cultural/value-based) under one umbrella. Our award-winning Anderson Enterprise Incentive Solution, AEIS® enables all employees to accumulate the recognition in one place and choose from a broader assortment of awards. The management reporting is also a powerful tool to use for coaching.
What Total Rewards elements are on the top of your list? Is recognition on the top of your list? Are you getting a significant return on investment in your people? Are you stimulating continued improvement?
