In this article we will focus on how to create a total rewards model, that attracts job seekers, retains and engages your current employees to perform to expectations and bring about desired business results.
To begin creating a model that will provide for a competitive advantage in the market, business owners need to have a clear understand of what is important to potential and current employees.
Generally employees, regardless of work industry, experience or length of service desire the following:
A friendly workplace
Fair opportunity for advancement
Job security
Respect and autonomy
Variety
The ability to manage the right amount of work
Opportunities for development
A work environment that is free from harassment and discrimination
Ability to use their skills and knowledge
Free from physical or psychological hazards
Many employees are also looking for their place of work to be socially conscious and responsible; which includes taking action to address concerns within its community or have a global impact.
In addition, business owners need to understand what they can reasonably provide to employees while managing costs, adjusting to economic, technological, legislative changes and meeting customer expectations while achieving their organizational objectives.
In order to address this business challenge, it is helpful to understand the total rewards landscape and what must legally be made available to employees, supplementary benefits and their purpose and the voluntary benefits which help to create a strong employer value proposition to align with desired performance results.
In the table below we identify the types of benefits that are available to employees by business owners, who initiates the source of the benefit provision and the impact on an employer’s value proposiition.
Type of Benefits | Source of benefit offering | Impact on employer’s value proposition |
Legislated benefits | Imposed on businesses by the government and must be provided to employees to remain in legal compliance. | Insignificant as these benefits provide no competitive advantage in attracting, retaining or engaging future or current employees. |
Supplementary benefits | Government sponsored to provide employees with basic health care and minimum pay when an employee is not working. | Insignificant as these benefits provide no competitive advantage in attracting, retaining or engaging future or current employees. |
Voluntary Benefits | Employer initiated, these additional benefits which include offerings to enhance an employees’ experience at work, contribute to well-being of employees and their family,increase employee performance, and achieve business goals, enhance public perception. | Significant, as these additional benefits provide a competitive advantage to attracting, retaining and engaging current and future employees. |
If you have any questions about this article or how you can utilize total rewards to enable your business goals reach out to us.
Mike
Website blackbrickcapital.ca Phone 416-428-7728 (Mobile)
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