It’s not about the money…rewards that reach the parts paychecks can’t!

With staff retention and attraction still an issue that clouds HR minds, many organizations are still scrambling for tools and strategies that deliver in these areas. They’re doing this on an employee landscape where wellbeing, purpose, and values alignment are all increasingly important to the talented individuals they want to hire and keep. And for many, with uncertain economic outlook and rapidly spiraling costs, they’ve got to find these tools in a way that doesn’t cost the world.

To help understand how to move forward on this agenda, Kate Graham, Head of Content Labs and Insights at UNLEASH is joined in conversation by Carrie Theisen, Vice President of Total Rewards at Fannie Mae, and Bill Tompkins, Vice President of Total Rewards at SmileDirectClub as they discuss how to create a compelling reward strategy and implement it in a way that works and speaks to organizational needs.

What’s shifted is the center of total reward used to be the company policy outward, and now its the employee and their family outward. 

Bill Tompkins, Vice President of Total Rewards at SmileDirectClub

Watch on-demand to:

• Get the latest on how hybrid and remote work have hugely impacted reward strategy.
• Understand how the pandemic has radically changed the reward landscape and what workers want as a result.
• Hear about how rewards can showcase values and why that’s important to HR.

The new paradigm of reward

Most in HR and reward won’t need to be reminded of this but it bears re-iterating: the pandemic, and subsequent long-term changes to working structures, drastically changed the working world and reward along with it. As Theisen reminded webinar viewers, the first instance that this became apparent was when the pandemic disrupted reward strategy. As a result of the so-called ‘Great Resignation,’ businesses had to start offering more competitive salaries to attract and retain staff, as well as shifting cultures and what rewards they offered.

It means, as Theisen sees it, organizations have to have their finger on the pulse a lot more when it comes to what rewards are in vogue, and what competitors are offering as salaries. For Tompkins, it means organizations have to get au fait with new expected structures of work – and quick. It means getting less risk-averse with remote and hybrid work and starting thinking about how delivering for all staff, and high performers result in better organizational outcomes. It also means considering the impact that non-co-located work can have on staff remuneration, too. For instance, if an organization decides to start to grade pay dependent on how expensive a location is, they have to consider how that might impact their internal culture, pay to grade, and ability to attract new talent, too. A lot for HR to consider!

How to be fair with reward

With the disruption that new working structures have brought, it is on HR to keep reward fair. Whilst some businesses are rolling out new pay structures, impacted by factors such as geographical location, others are wary that this can impact engagement and other key metrics. Tompkins explained that at SmileDirectClub they try and keep fairness at the heart of reward as well as understanding its complexity. But to get around this complexity, they are trying to stratify and simplify their reward structure, looking to going market rates and understanding how talent scarcity for specific roles might also impact pay.

Within this, companies also have to be aware of how remote and virtual have created more competitiveness in the market. Where once a company in Nashville might have only had to compete with other local businesses, they may now be competing with bigger firms who can often pay a lot more. They might also have to consider whether hybrid employees need commuter benefits to entice them to say and what additional add-on spending remote teams might need. It means a more holistic approach to reward might be needed.

Delivering on new worker expectations

Within these new structures, employers must remember that a one-size-fits-all approach will not work for everyone. Younger employees may want to come into an office, seeking social and developmental benefits. In addition, a workforce that was more geographically dispersed than it was pre-pandemic may require careful management regards workday structuring so staff can work together well from different spaces and timezones. There are also more calls for better work-life balance and trust from their employer, so learning how to incorporate this via better flexibility offerings will also be key, a point emphasized by both Tompkins and Theisen.

A step-change will also need to be considered when it comes to delivering against what workers increasingly value, added Theisen. Top of mind will have to be increased compassionate leave, mental health benefits, and better work-life integration and accessibility offerings. Of course, HR can’t just throw out new rewards and working conditions and hope they work, measurement will have to be a key part of this, too. And this measurement will have to be against metrics of central importance.

And, despite all the change, organizations won’t be able to forget traditional ways of rewarding and recognizing staff, explained Tompkins. Managers should be reminded how to recognize and reward staff, understanding the importance of delivering good feedback. And simple things like gift cards, reward lunches, points, and public recognition, will all still play a part in this brave new world of reward.